PRECIOUS METALS

Golden Predator to acquire Viva Gold

Golden Predator Mining is to acquire Viva Gold in an all-share deal valued at around C$12 million to join advanced stage gold development projects in Nevada, USA, and Yukon, Canada.

Staff reporter
 Viva Gold's Tonopah project in Nevada, USA

Viva Gold's Tonopah project in Nevada, USA

Viva shareholders will receive 1.6 shares of Golden Predator for each Viva share, a 35% premium to the 20-day volume weighted average price, and will hold about 27% of Golden Predator upon completion.

Upon closing, Golden Predator will be managed by William Sheriff as executive chair, James Hesketh as president and CEO, and Mike Maslowski as COO.

In connection with the transaction, Golden Predator has proposed the distribution of 8.6 million shares of C2C Gold to shareholders as a return of capital, which are trading at C17c.

"We strongly believe our shareholders and the communities we operate in will benefit from jurisdictional diversification and the addition of proven mine building expertise at this pivotal time," said Golden Predator Mining executive chair William Sheriff.

Viva Gold president and CEO James Hesketh said the deal brought together "all of the key ingredients required to build a premier junior gold producer".

"Two advanced stage gold development projects ready for permitting and development, exploration upside, excellent mining jurisdictions, strong management skillsets, a solid balance sheet and strong market liquidity," he said.

The resulting company will have the advanced stage Tonopah gold project in Nevada and the formerly operating Brewery Creek gold mine in Yukon with a combined 1.8 million ounces of measured and indicated heap leachable gold resources, with 800,000oz of inferred resources, with a focus on low-cost, openpit, heap leach production.

The company will have more than $6 million in cash and marketable securities and will aim to realise cost reduction synergies through reduced overhead.

Shares in Golden Predator Mining are trading at 20c, valuing the company at $35 million.

Shares in Viva Gold are trading at 26c, valuing the company at $10 million.

 

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