Gran Colombia proposes merger with Guyana, Gold X – by Donna Slater ( – May 11, 2020)

Canadian midtier gold producer Gran Colombia Gold has signed a definitive agreement to complete a business combination with junior miner Gold X Mining and has submitted a proposal to Guyana Goldfields to acquire all its issued and outstanding common shares.

As part of the transaction, Gran Colombia will acquire the remaining 81% of the issued and outstanding shares of Gold X that it does not already own at a share exchange ratio of 0.500 of its own shares for each Gold X share.

This implies a headline value of C$3.17 a piece, representing a premium of 15% to the closing price on the TSX-V on May 8, and a premium of 41% to the volume-weighted average price of Gold X shares over the 20 trading days ended May 8.

The transaction is also subject to the concurrent completion by Gran Colombia of its acquisition of Guyana Goldfields and other conditions customary for completion of similar transactions.

Gran Colombia has submitted a proposal to Guyana Goldfields to acquire all of its issued and outstanding common shares at an exchange ratio of 0.142 of its shares for each Guyana Goldfields share.

For the rest of this article:

No comments yet.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.