Mega Uranium and Rockgate Capital Announce Execution of Definitive Agreement

Mega Uranium Ltd. (TSX:MGA)and Rockgate Capital Corp. (TSX:RGT) announced that they have executed a definitive agreement regarding their merger.

As quoted in the press release:

The Merger will be completed by way of an arrangement under the Business Corporations Act (British Columbia), resulting in Rockgate becoming a wholly-owned subsidiary of Mega at closing. Shareholders of Rockgate will receive 2.2 common shares of Mega in exchange for each 1 common share of Rockgate (the “Exchange Ratio”) held immediately prior to the effective time of the Arrangement (subject to rounding), resulting in them owning approximately 49% of the issued and outstanding shares of Mega upon completion of the Merger, based upon the number of Mega’s common shares currently outstanding. In connection with the Merger and subject to the approval of Mega’s shareholders, Mega will effect a 1-for-10 consolidation of its common shares immediately or shortly after the effective time of the Arrangement. If the share consolidation is completed, the Exchange Ratio will effectively be 2.2 post-consolidation shares of Mega for each 10 Rockgate shares held immediately prior to the effective time of the Arrangement.

Mega’s President, Stewart Taylor, said:

The execution of a definitive arrangement represents significant progress and a reciprocal commitment of the parties in advancing our merger. We are also very focused on consummating the sale of Lake Maitland to Toro Energy announced earlier this week and see our merger with Rockgate, together with the Toro Energy transaction, as major efforts aimed at creating value and contributing to the long term strength of Mega as a diversified uranium company.

To view the whole press release, click here.