Arizona Gold Corp. (TSX: AZG) and Golden Predator Mining Corp. (TSX: GPY) announced Monday the merger plans to create a new near-term gold producer focused on North America. Arizona Gold is to take the helm of the newly formed entity and plans to change its name to Sabre Gold Corp.
Pursuant to their agreement, all Golden Predator shares will be exchanged for Arizona Gold shares at a ratio of 1.65 Arizona Gold shares per 1 Golden Predator share. Upon the closing of the transaction, current Arizona Gold and Golden Predator shareholders will each own 55% and 45% of the combined company, respectively.
The merger transaction will combine the Copperstone gold mine in Arizona and Brewery Creek gold mine in Yukon into one company.
The company relayed that the merger will have a combined measured & indicated resource base of approximately 1.1 million gold ounces, along with combined inferred gold resources of 1.5 million ounces. The combined company will also have a consolidated cash and investment balance of $23.0 million, including a $9.6 million pro-forma cash figure as of March 31, 2021.
The resulting company will be headed by the current Arizona Gold executive team, led by Arizona Gold CEO Giulio Bonifacio while William Sheriff will take on the role of non-executive chairman. Golden Predator CEO Janet Lee-Sheriff will take on an advisory role. The combined company’s board will be made up by 3 representatives from each company.
The transaction is still subject to both the shareholders’ approvals of the two companies. The respective board of directors of each company, however, have entered into customary voting support in favor of the merger. Certain shareholders have followed suit, including Canadian investor Eric Sprott who is a shareholder in both Arizona Gold and Golden Predator.
Arizona Gold last traded at $0.12 while Golden Predator Mining last traded at $0.155 on the TSX. The trading for both stocks has been halted since the merger announcement.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.