First Mining Finance to Acquire Gold Canyon Resources and PC Gold

First Mining Finance (TSXV:FF) has entered into an agreement to acquire all issued and outstanding shares of Gold Canyon Resources (TSXV:GCU) and PC Gold (TSXV:PKL). The two transactions are not conditional upon one another.
As quoted in the press release:

Under the Agreements, shareholders of Gold Canyon will receive one common share of First Mining for each Gold Canyon share held in addition to shares in a newly formed Spin-out company (“New Gold Canyon”) which will hold certain non-gold exploration assets currently held by Gold Canyon; and PC Gold shareholders will receive 0.2571 common shares of First Mining for each PC Gold share. Upon completion of the proposed transactions, the former shareholders of Gold Canyon will hold approximately 55.4% of the shares of the resulting company, former shareholders of PC Gold will hold approximately 9.6% of the shares of the resulting company and the current shareholders of First Mining will hold approximately 35.0% of the shares of the resulting company. The transactions imply a value of C$0.35 per Gold Canyon share and C$0.09 per PC Gold share based on the closing prices of each company’s common shares on the TSX Venture Exchange (“TSXV”) on August 31, 2015. Based on the 30 day volume-weighted average price (“VWAP”) of each of the companies on the TSXV for the period ending August 31, 2015, the offer represents a premium of approximately 204% to Gold Canyon’s VWAP and 255% to PC Gold’s VWAP. The transactions will be implemented by way of separate plans of arrangement (the “Arrangements”) under the Business Corporations Act (British Columbia) (in the case of Gold Canyon) and under the Business Corporations Act (Ontario)(in the case of PC Gold).

First Mining Finance chairman, Keith Neumeyer, said:

We believe that the current market climate for junior exploration companies remains very challenging and thus requires consolidation and that only companies with attractive assets and supportive shareholder bases will survive this market cycle which still may last for years. We believe this transaction provides an excellent opportunity for the shareholders of all three companies to be part of a leading exploration and development company with a dedicated, focused and experienced management team.

Click here for the full press release.