Aya Gold & Silver Incorporated (TSX: AYA) announced this morning the closing of the previously announced acquisition of Algold Resources (TSXV: ALG). The transaction is reported to be for total consideration of $15.2 million.
The company paid the acquisition price in a combination of cash and shares: 2,133,333 shares issued to secured creditors, 307,294 shares and $100,000 distributed to Algold unsecured creditors, 294,946 shares to Algold common shareholders, and 85,680 shares and $2.6 million in payments and advances.
Algold shareholders will automatically receive the Aya shares at 0.010601 Aya common share for each Algold share.
The company relayed that following the Algold acquisition, it is now focusing on exploring and developing its 75%-owned Tijirit Gold Project in Mauritania. Last month, the total measured & indicated resource estimate for the site was upgraded to 292,600 ounces at 2.19 g/t gold, along with inferred resources of 533,200 gold ounces at 1.63 g/t.
The company has now begun the process of conducting a feasibility study on the property.
Aya Gold and Silver Incorporated last traded at $8.44 at the TSX.
Information for this briefing was found via Sedar and Aya Gold & Silver. 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.