Leagold Announces Intention to Commence Shareholder Supported Take-Over Bid for Brio Gold to Create a 450,000 Ounce Per Year Gold Producer, With Significant Growth Potential

- January 23rd, 2018

Leagold Mining (TSX:LMC; OTCQX:LMCNF) (“Leagold” or the “Company”) is pleased to announce that it intends to make an offer (the “Offer”) to acquire all of the issued and outstanding shares (the “Brio Shares”) of Brio Gold (“Brio”) on or before February 28, 2018. Pursuant to the Offer, holders of Brio Shares will receive 0.922 of a share … Continued

Leagold Mining (TSX:LMC; OTCQX:LMCNF) (“Leagold” or the “Company”) is pleased to announce that it intends to make an offer (the “Offer”) to acquire all of the issued and outstanding shares (the “Brio Shares”) of Brio Gold (“Brio”) on or before February 28, 2018.
Pursuant to the Offer, holders of Brio Shares will receive 0.922 of a share of Leagold for each Brio Share held, representing an implied price of C$2.80 per Brio Share and total consideration for all of the issued and outstanding Brio Shares of approximately US$264 million, based on the 5-day volume weighted trading price of Leagold shares on the Toronto Stock Exchange (the “TSX”).
 Leagold CEO Neil Woodyer stated:

“The combination with Brio represents a unique opportunity to acquire a portfolio of producing assets with a meaningful growth profile. The all-stock offer results in Brio shareholders owning approximately 42% of the combined company.
The combined operations are expected to produce approximately 450,000 ounces in 2018, with the potential for growth to over 700,000 ounces in 2020 at all-in sustaining costs in the mid-$800s.”

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