Alexis strikes $33.2 million deal to acquire Garson Gold
Tue Oct 20, 3:44 PM
The Canadian Press
ca.news.finance.yahoo.com
By The Canadian Press
VANCOUVER, B.C. - Alexis Minerals Corp. (TSX: AMC.TO) has struck a friendly deal to acquire Garson Gold Corp. (TSXV: GG.V), a Vancouver-based junior miner, in a share swap deal valued at $33.2 million.
Alexis currently owns about 31.2 million of Garson or about 26 per cent of the company. Garson stock was halted on the TSX Venture Exchange pending news from the company.
The two companies jointly announced Tuesday they had struck a friendly deal in which Alexis will pay .29 of a common share for each Garson share the company does not already own.
The equity value of the deal is $33.2 million, though Alexis said the net acquisition cost to the company is $28.8 million.
The boards of both companies have backed the deal, which will create a company with mines in Quebec, mills and other assets, as well as the past-producing New Britannia Gold Mine in Snow Lake, Man..
"This acquisition more than doubles our current gold resources at an acquisition cost of approximately C$40 per ounce of gold," said David Rigg, president and CEO of Alexis.
"The acquisition complements our Quebec-based production, development and exploration assets and approach. The potential to grow total gold production to above 150,000 ounces of gold per year in the medium-term will allow us to achieve this objective. We believe that the similar gold and base metal characteristics of the Snow Lake, Rouyn-Noranda and Val d'Or areas provide significant exploration potential."
David Tafel, CEO of Garson, said "combining with the seasoned Alexis mining team will result in a well funded mining company capable of reactivating the New Britannia Gold Mine."
"Additionally, as a result of this transaction, Garson shareholders will participate in the upside potential of the Alexis mining and exploration projects." |
