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Troilus to acquire UrbanGold to consolidate Troilus district

Troilus Gold has agreed to acquire UrbanGold Minerals for C$19 million to add 35,100 hectares to consolidate its 107,300-hectare Troilus project in the Frotet Evans Belt of Quebec, Canada, and increase its district potential.
Troilus to acquire UrbanGold to consolidate Troilus district Troilus to acquire UrbanGold to consolidate Troilus district Troilus to acquire UrbanGold to consolidate Troilus district Troilus to acquire UrbanGold to consolidate Troilus district Troilus to acquire UrbanGold to consolidate Troilus district

The former pit at Troilus Gold's Troilus project in Quebec, Canada

Staff reporter

Under the agreement, UrbanGold shareholders will receive 0.3004 of a Troilus share for each UrbanGold share, which implies a consideration of C30c per share, a 35.3% premium. Troilus currently owns 9.7% of UrbanGold and will issue 17.2 million Troilus shares.

"The acquisition of Urban Gold aligns with Troilus' focus on developing a near-term production asset while executing a growth strategy supported by a broad portfolio of exploration and early-development assets," said Troilus Gold president and CEO Justin Reid.

Troilus has a permitted advanced development asset with a preliminary economic assessment and extensive infrastructure in place and an estimated indicated mineral resource of 177 million tonnes grading 0.87 grams per tonne gold-equivalent for 4.96 million ounces gold-equivalent and an inferred resource of 116.7Mt grading 0.84g/t for 3.15Moz gold-equivalent.

Shares in Troilus Gold fell 5% upon the news to C$1.09, valuing the company at $144 million.