Juniors
The 3-way merger calls for St Andrew to exchange one treasury share for every United share tendered and one treasury share for every two Royal shares tendered. The same ratios apply to warrants and stock options.
Based on St Andrew’s closing price on Jan. 13, the deal values United’s shares at 27.5 apiece and Royal’s shares at 55 apiece. The appraisals are well above recent trading prices.
The deals are expected to close by April, assuming regulators and shareholders of Royal and United agree to the terms. St Andrew already owns 27% of each company.
After the merger, St Andrew will have roughly 147 million shares outstanding, of which 76.7% will be held by its existing shareholders. The remainder will be split nearly evenly among current shareholders of United and Royal.
The additions give St Andrew the largest land position in Ontario’s Timmins camp — roughly 712 sq. km.
The company’s most advanced property remains Taylor, where it has outlined an indicated and inferred resource of some 4.3 million tonnes grading 7.54 grams gold per tonne.
St Andrew also owns properties in the Mystery Creek region of central Alaska and the Eskay Creek region of northern British Columbia. All are prospective for gold and/or silver deposits.
St Andrew recently raised $2.6 million in two private placements of 12 million units priced at 20 apiece and 1 million flow-through shares at 25 apiece. A unit consists of a share and a warrant that can be exercised over the next two years, at 30.
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