Timmins Gold (TSX:TMM,NYSE:TGD) announced the completion of its plan of arrangement to acquire all 116,786,781 Newstrike Capital Inc. (TSXV:NES) issued and outstanding common shares. Newstrike Capital is now a wholly-owned subsidiary of Timmins Gold.
As quoted in the press release:
The Arrangement was completed under the Business Corporations Act (British Columbia). Under the terms of the Arrangement, which took effect at 12:01 a.m. (Vancouver time) this morning, Newstrike shareholders received 0.9 of a Timmins Gold common share and C$0.0001 in cash for each Newstrike common share. The Arrangement gives Timmins Gold ownership of the Ana Paula gold project and the Ejutla gold/silver project, both of which are located in Mexico.
In connection with the closing of the Arrangement, Timmins Gold increased the size of its board of directors to nine, with Mark Backens, a former director of Newstrike being appointed to the Timmins Gold board of directors.
“The acquisition positions Timmins Gold as an emerging intermediate gold company supported by current production and a very attractive pipeline of advanced stage growth projects with manageable capital requirements”, said Bruce Bragagnolo, CEO of Timmins Gold. “The assets now owned by Timmins Gold are highly complementary and we are excited about the many opportunities ahead for us to continue delivering value to shareholders.”