Royal Oak’s Pamour acquisition delayed

Giant Resources of Australia has agreed to extend the closing of Royal Oak Resources’ (TSE) acquisition of a controlling interest in the Pamour (TSE) group of companies. Royal Oak says it now expects the transaction to close on Oct. 5 or shortly thereafter. The $33-million deal was originally scheduled to close on Sept. 27.

On Oct. 5, ScotiaMcLeod, Royal Oak’s lead agent for the financing, will complete an international offering of Royal Oak units. At a cost of $1.10, each unit will consist one common share plus half a common share purchase warrant. The offering is expected to raise at least $16 million, mainly from Europe-based buyers.

If the acquisition is successful, Royal Oak will gain a 67.1% interest in Pamour.