West Red Lake (CSE: RLG) has reached terms to proceed with a previously announced business combination. The firm will be combining with DLV Resources (TSXV: DLV.H), which is held in large part by Frank Guistra.
The definitive agreement will see West Red lake acquired for 0.125 of a share for each share held, equating to consideration per share of $0.0625, based on the most recent trading price of $0.50 per share for DLV. On a post-transaction basis, DLV is expected to have 52.0 million shares outstanding, with West Red Lake shareholders owning 45.5% of the company.
Outside of West Red Lake shareholders, current DLV shareholders will own 31.87% of the company on a post-transaction basis, while 22.63% will be owned by subscribers to a concurrent $4.6 million flow-through financing being conducted at $0.0475 per share in West Red Lake.
Sponsored · Altamira Gold Corp.
Upon closing of the transaction, DLV Resources is expected to move its listing from the Nex Board to the TSX Venture, while West Red lake will be delisted from the CSE.
West Red Lake shareholders are set to vote on the combination on November 10.
DLV Resources is a Nex-board listed issuer, whom is significantly controlled by Frank Guistra. Guistra currently owns or controls a total of 17.29% of the company via direct ownership as well as through joint actors.
West Red Lake last traded at $0.04 on the CSE.
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