Tuesday 14th July 2020

Resource Clips

Elgin, Gold-Ore announce Merger

Resource Clips - essential news on junior gold mining and junior silver miningElgin Mining Inc TSXV:ELG and Gold-Ore Resources Ltd TSX:GOZ announced Elgin’s intention to acquire Gold-Ore. Under the agreement, Gold-Ore shareholders will receive one Elgin common share and one-half of one Elgin common share purchase warrant at a strike price of $1.30 per Elgin share with a two-year term. The transaction values Gold-Ore at $1.22 per common share, a premium of 66.5% based on the volume-weighted average prices of both companies for the 10 trading days ending January 31, 2012. Management of both companies support the transaction unanimously.

The combined company will have approximately $35 million in cash, the Bjorkdal Gold Mine in Sweden, which produced a cash flow of $12.1 million in 2011, as well as the past-producing Lupin Gold Mine and the Ulu Gold Project in Nunavut.

The transaction terminates an arrangement announced December 19, 2011, in which Gold-Ore was to acquire Astur Gold Corp TSXV:AST. Gold-Ore will pay Astur a break fee of $2.5 million.

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Elgin Mining Inc
Patrick Downey

Gold-Ore Resources Ltd
Glen Dickson

by Greg Klein

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