Troilus acquires UrbanGold, grows projects portfolio in Quebec
(Kitco News) - Troilus Gold (TSX: TLG) (OTCQB: CHXMF) and UrbanGold Minerals (TSXV: UGM) ("UrbanGold") announced today that the companies have entered into a definitive agreement, pursuant to which Troilus has agreed to acquire all of the issued and outstanding common shares of that it does not currently own.
Troilus currently owns 6,156,291 UrbanGold shares, or approximately 9.7% of the UrbanGold shares outstanding. Under the terms of the agreement, UrbanGold shareholders will receive 0.3004 of a Troilus common share for each UrbanGold share.
The exchange ratio implies a consideration of C$0.30 per UrbanGold Share based on the 20-day volume weighted average price of the Troilus shares on the Toronto Stock Exchange on March 22, 2021 for a total consideration of approximately C$19 million on a 100% and basic basis. The exchange ratio represents a premium of 35.3%.
"The acquisition of Urban Gold aligns with Troilus' focus on developing a near-term production asset while executing a growth strategy supported by a broad portfolio of exploration and early-development assets within the Frôtet Evans Belt and Quebec. We look forward to welcoming Urban's shareholders to Troilus and our continued success together," stated Justin Reid, Troilus CEO.
Troilus is a Toronto-based, Quebec focused, advanced stage exploration and early-development company focused on the mineral expansion and potential mine re-start of the former gold and copper Troilus mine.
UrbanGold is a precious and base metals exploration company with its activities focused in prospective areas of Quebec. The company specializes in project generation supported by substantial exploration expertise.