The Conversation (0)
Northern Dynasty Minerals Completes Acquisition of Mission Gold
Dec. 24, 2015 09:23AM PST
Gold InvestingNorthern Dynasty Minerals (TSX:NDM) reported that it has closed its previously announced plan of arrangement whereby it will acquire Mission Gold. Marcel de Groot was also appointed as a director of Northern Dynasty.
Northern Dynasty Minerals (TSX:NDM) reported that it has closed its previously announced plan of arrangement whereby it will acquire Mission Gold. Marcel de Groot was also appointed as a director of Northern Dynasty.
As quoted in the press release:
Pursuant to the Arrangement, Northern Dynasty issued an aggregate of 27,593,341 common shares to the former shareholders of Mission Gold (0.5467 of a Northern Dynasty common share for each issued Mission Gold common share which exchange ratio has been determined pursuant to the working capital adjustment provision of the Arrangement). In addition, warrants to purchase an aggregate of 13,182,076 common shares of Mission Gold at a price of $0.50 per share were exchanged for warrants to purchase an aggregate of 13,182,076 common shares of Northern Dynasty exercisable at a price of $0.55 per share on or before July 9, 2020, and warrants to purchase an aggregate of 2,735,433 common shares of Mission Gold at a price of $2.72 per share were exchanged for warrants to purchase an aggregate of 2,735,433 common shares of Northern Dynasty exercisable at a price of $3.00per share on or before September 14, 2017.
Also pursuant to the Arrangement, Mr. Marcel de Groot was appointed as a director of Northern Dynasty.
The Arrangement was approved by 100% of the votes cast by securityholders of Mission Gold at an annual general and special meeting held on December 21, 2015. Final approval for the Arrangement was obtained from the Supreme Court of British Columbiaon December 23, 2015. Pursuant to the Arrangement, Mission Gold amalgamated with a wholly-owned subsidiary of Northern Dynasty to form a merged company that is wholly-owned by Northern Dynasty. Mission Gold common shares will be delisted from the TSX Venture Exchange after market close on December 24, 2015, and Northern Dynasty will make applications to the relevant securities commissions for Mission Gold to cease to be a reporting issuer under Canadian securities laws.
Immediately following closing of the Arrangement, the sale of Mission Gold’s wholly-owned subsidiary, CIC Resources Inc., was completed. The consideration received was 437,597 common shares of a TSX listed issuer having a value of $1,500,000 based on the closing price for such shares on November 20, 2015.