Colibri Resource Corp. on April 3 said it entered into a definitive agreement to acquire private firm Canadian Gold Resources Ltd. from Ontop Capital Ltd.
Under the terms, Colibri agreed to issue 24,242,425 common shares at 16.5 Canadian cents apiece for a total of C$4.0 million.
Colibri previously agreed to issue an aggregate of 26,666,667 shares at 15 cents per share under terms of a letter of intent dated Dec. 15, 2016.
Ontop Capital will distribute the consideration shares to its shareholders by way of dividend, immediately after closing of the deal.
The transaction is subject to approval from shareholders and from the TSX Venture Exchange.