MGP:CA and Rolling Rock Resources Corporation announced an all-share transaction whereby Mega will acquire all outstanding common shares of Rolling Rock, with Rolling Rock becoming a wholly-owned subsidiary of Mega. Rolling Rock shareholders will receive 0.4 common shares of Mega for each common share. The exchange ratio represents a 37% premium over Rolling Rock’s 20-day volume weighted average share price. Total consideration is valued at approximately $10.1 million.
President and CEO of Mega Jim Rogers said, “The acquisition of Rolling Rock is a critical step toward the realization of Mega’s strategic business plan. The Monument Bay Project, which Rolling Rock acquired from Bema Gold and Wolfden Resources in 2006, fits well in our project portfolio and is known to our management team. I am excited by the opportunity to champion this project and am confident that Mega’s experienced team has the expertise to realize this project’s potential.”
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President/CEO, Mega Precious Metals Inc.
or Scott Angus,
President/CEO, Rolling Rock Resources Corp.
by Ted Niles