LeaGold Mining Corp. completed its C$314 million acquisition of Brio Gold Inc. after securing regulatory and shareholder approvals, the companies said in separate May 24 statements.
Under an amended deal, Brio Gold shareholders are entitled to receive 0.922 of a LeaGold share and 0.4 of a warrant for each share held. Each whole warrant is exercisable at C$3.70 per LeaGold share for two years from closing.
Earlier in May, LeaGold arranged debt and equity financings to complete the all-share acquisition and to repay Brio Gold's debt.
Brio Gold's shares will now be delisted from the Toronto Stock Exchange.
Upon closing, Yamana Gold Inc. became LeaGold's largest shareholder with about 58,115,954 shares, representing an approximate 20.5% interest. Yamana held majority ownership in Brio with a 53.6% interest.
In addition, Yamana Chairman and CEO Peter Marrone was appointed to the LeaGold board, while Brio Gold President and CEO Gil Clausen opted not to join the LeaGold board in favor of taking up the same roles at another company.
"We are very excited about LeaGold's new position as a mid-tier gold producer with the growth of our production rate to over 400,000 ounces per year," LeaGold CEO Neil Woodyer said.
The company plans to release updated production guidance for 2018 with second-quarter results in August after reviewing operating plans.
