Mega Precious To Be Acquired By Yamana Gold

Picture: El Peñon. Yamana Home site.

Yamana Gold (NYSE:AUY)

This article is an update of my preceding article on Yamana Gold published on Feb. 13, 2015, about the 4Q14 and full year 2014 results.

Early today Yamana Gold announced that it will acquire Mega Precious Metal (OTCPK:MPRXF) for C$0.10 per share.

Yamana Gold: Mega Precious Metals announces that it will be acquired by Yamana Gold for consideration of C$ 0.10/share :

Mega Precious Metals announces that it has entered into a definitive agreement with Yamana Gold whereby Yamana will acquire all of the outstanding shares of Mega under a plan of arrangement for consideration of

0.02092 of a Yamana share and cash of

C$0.001 per Mega share, equivalent to C$0.10 per Mega share.

  • The total consideration to Mega shareholders is approximately

    C$17.5 million, based on the Company's issued current and outstanding shares. Yamana has also agreed to purchase the outstanding convertible debentures held by Pacific Road Capital Resources Funds.

  • Also under certain circumstances where the transaction is not completed, Mega has agreed to pay a termination fee of C$700,000 to Yamana.
  • Yamana has agreed to a C$500,000 placement in Mega if the transaction is terminated in certain circumstances.

Mega Precious Metals is a Canadian precious metal exploration company with projects in Manitoba, Red Lake and Nunavut.

  1. Manitoba: Monument Bay Project Twin Lakes Open pit. Overall Measured and Indicated resources of 2.1 million ounces @ 1.52 g/t gold and 248,000 mtu (Metric Tonne Unit) of WO3.
  2. Manitoba: Domain Project:

    Winter 2008 drill intercepts include results of: 7.29 g/t Au over 9.0 m/ 15.16 g/t Au over 2.7 m/ 17.44 g/t Au over 2.65 m/ 10.43 g/t Au over 2.67 m/ 7.40 g/t Au over 1.65 m

  3. Red Lake: North Madsen Properties:

    Total Measured&Indicated

    22,958,910 Tonnes

    1.20 G/T

    888,752 Au Oz

  4. Red Lake: Headway Property: Highlights of historical, none NI-43101 compliant exploration includes 0.61 oz/ton gold over 3.08 feet in drill core (H-13) and several surface grab samples exceeding 1.0 oz/ton gold.
  5. Nunavut: Blue Caribou Property: Inferred Mineral Resource of 2.77 million tonnes at weighted average grades of 2.82% copper, 0.06% molybdenum, 31.26 g/t silver and 0.20 g/t gold using a 1% cut-off grade for copper and a minimum true width of 2m.

Source : https://seekingalpha.com/article/3099506-yamana-gold-to-acquire-mega-precious-metal-an-exploration-company-for-c-0_10-per-share

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