Nord Gold NVsaid April 27 that it has formally launched an offer to acquire all of the outstanding common shares of it does not currentlyown at a price of 25.3 Canadian cents apiece.
The all-cash offer values Northquest at about C$27.3 millionon an undiluted basis. The offer represents a 15% premium based on the closing priceof Northquest shares on TSX Venture Exchange on Dec. 11, 2015, the last tradingday before Nord Gold announced its intention to make the takeover bid.
Under a subscription agreement signed between the companies inJune 2015, the offer represents a 25% premium on the volume-weighted-average pricesof the shares for 20 trading days ending Nov. 23, 2015, the last trading day beforeNord Gold's ownership of the shares increased to above 50%, which triggered theobligation to make a takeover bid.
The takeover bid came after Nord Gold emerged as a 52.3% of Northquestin November by paying C$5 million to exercise warrants over 17,500,000 shares.
Northquest owns the high-grade Pistol Bay gold project in Canada's Nunavut Territory.The property consists of 860 square kilometers of mineral rights within the underexploredRankin-Ennadai greenstone belt.