Aya Gold & Silver Incorporated (TSX: AYA) announced this morning the closing of the previously announced acquisition of Algold Resources (TSXV: ALG). The transaction is reported to be for total consideration of $15.2 million.
The company paid the acquisition price in a combination of cash and shares: 2,133,333 shares issued to secured creditors, 307,294 shares and $100,000 distributed to Algold unsecured creditors, 294,946 shares to Algold common shareholders, and 85,680 shares and $2.6 million in payments and advances.
Algold shareholders will automatically receive the Aya shares at 0.010601 Aya common share for each Algold share.
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The company relayed that following the Algold acquisition, it is now focusing on exploring and developing its 75%-owned Tijirit Gold Project in Mauritania. Last month, the total measured & indicated resource estimate for the site was upgraded to 292,600 ounces at 2.19 g/t gold, along with inferred resources of 533,200 gold ounces at 1.63 g/t.
The company has now begun the process of conducting a feasibility study on the property.
Aya Gold and Silver Incorporated last traded at $8.44 at the TSX.
Information for this briefing was found via Sedar and Aya Gold & Silver. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
