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Newstrike Capital Inc. (TSXV:NES) reported that its shareholders approved the Plan of Arrangement with Timmins Gold Corp. Newstrike expects to seek approval from the Supreme Court of British Columbia on May 1, 2015.
Under the Plan of Arrangement, Timmins Gold will acquire all the issued and outstanding common shares of Newstrike, creating “an emerging, Mexican-focused intermediate gold mining company with a portfolio of high-quality production and development assets all based in Mexico, including a producing mine, San Francisco, and two robust development assets, Ana Paula and Caballo Blanco.”
As quoted in the press release:
Newstrike held a special meeting of shareholders (the “Newstrike Meeting”) earlier today at which 98.81% of the shares represented at the Newstrike Meeting voted in favour of the Arrangement and 98.52% of the shares represented at the Newstrike Meeting excluding the shares held by the Newstrike Major Shareholders, as defined in the joint information circular of Newstrike and Timmins dated March 23, 2015, voted in favour of the Arrangement. Timmins held its annual and special meeting of shareholders earlier today at which Timmins’ shareholders also voted in favour of the Arrangement. On closing of the Arrangement, all of the issued and outstanding common shares of Newstrike will be exchanged on the basis of 0.9 of a Timmins common share and C$0.0001 in cash per Newstrike common share and existing Timmins and Newstrike shareholders will own approximately 64% and 37% of the combined company, respectively.
Newstrike expects to seek a final order approving the Arrangement from the Supreme Court of British Columbia on May 1, 2015.
Assuming all other terms and conditions to the Arrangement are met, including receipt of approval or clearance from the Mexican Federal Economic Competition Commission (which clearance shall include the expiry, termination or waiver by the Mexican Federal Economic Competition Commission of all applicable waiting periods), it is expected that the Arrangement will close in mid-May, 2015.
Click here to read the Newstrike Capital Inc. (TSXV:NES) press release
Click here to see the Newstrike Capital Inc. (TSXV:NES) profile.