Sulliden Mining Amends Agreement to Acquire Coastal Gold

Sulliden Mining Capital Inc. (TSX:SMC) and Coastal Gold Corp. (TSXV:COD) announced that they have signed an amendment to the definitive arrangement agreement under which Sulliden will acquire Coastal Gold.

As quoted in the press release:

Under the Terms of the Amendment Agreement, Sulliden has included an additional cash component to its offer to acquire each outstanding Coastal Gold common share.

Pursuant to the Amendment Agreement, Sulliden will acquire each outstanding Coastal Gold common share for 0.05 of a Sulliden common share and a cash payment of CDN$0.01 per outstanding Coastal Gold common share. The implied transaction value is approximately $5.4 million, including the assumption of $1.50 million in debt. Upon completion of the Transaction, Coastal Gold will be a wholly-owned subsidiary of Sulliden. The directors of each company have unanimously approved the Amendment Agreement.

It is anticipated that the Coastal Gold special shareholder meeting to approve the Transaction will proceed as scheduled on May 6, 2015 at 10am EST.

Justin Ried, president and CEO of Sulliden, said:

We look forward to continuing the work that has already been initiated with the Coastal Gold team at Hope Brook. Sulliden’s goal will be to advance the asset immediately to the next stage of development via engineering, and to continue de-risking the project. Our team along with our strong balance sheet will allow us to accomplish this.

Click here to read the full Sulliden Mining Capital Inc. (TSX:SMC) and Coastal Gold Corp. (TSXV:COD) press release.