GT Gold Corp (TSXV: GTT) this morning announced that it has entered into a binding agreement to be acquired by that of Newmont Corporation (TSX: NGT) (NYSE: NEM). The transaction values the junior explorer at roughly $456.0 million.
The proposed transaction will see GT Gold shareholders receive $3.25 per share, paid in cash, which represents a 38% premium to the 20 day volume weighted average price of the equity as of yesterday. The transaction is not subject to a financing condition, while benefiting current shareholders by removing future dilution, commodity, development, and execution risk.
The transaction is to be approved via a court approved plan of arrangement, which will require 66 2/3 of GT shareholders to approve of the transaction, as well as a simple majority of the votes cast by shareholders after excluding votes from certain shareholders at a special meeting of the shareholders. A termination fee, payable by GT Gold, of $12.65 million is also included as part of the transaction.
The firm currently has approval from 43% of shareholders, which includes directors and senior officers as well as notable shareholders Muddy Waters, K2, and Ross Beaty.
The arrangement is slated to close in the second quarter of 2021.
GT Gold Corp last traded at $2.01 on the TSX Venture.
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