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Arizona Gold and Golden Predator merge to create near-term North American gold producer

Kitco News

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(Kitco News) - Arizona Gold (TSX: AZG) and Golden Predator Mining today announced that they have entered into a definitive arrangement agreement pursuant to which Arizona and Golden Predator have agreed to merge to create a new North American focused near-term gold producer.

According to a press-release, the transaction combines the fully permitted past-producing Arizona Gold's Copperstone gold mine in Arizona and the historic past-producing Golden Predator's Brewery Creek gold mine in the Yukon.

The companies envision a sequential development of the Copperstone mine followed by the Brewery Creek mine, with the combined resource base of approximately 1.1 million oz gold in the Measured & Indicated categories, plus an additional approximate 1.5 million oz gold in the Inferred category, paired with considerable exploration upside at each project.

Under the terms of the agreement, all of the issued and outstanding common shares of Golden Predator will be exchanged for common shares of Arizona on the basis of 1.65 common shares of Arizona per common share of Golden. Upon completion of the transaction, existing Arizona and Golden Predator shareholders will own approximately 55% and 45% of the combined company common shares, respectively, on an outstanding basis.

Giulio Bonifacio, CEO & Director of Arizona, commented, "We view this as a great opportunity to bring together the advanced-stage Copperstone mine and the Brewery Creek mine, both former producing gold mines in superior jurisdictions, under the same umbrella to leverage a shared technical team and corporate infrastructure. The combined company will provide for stronger peer positioning amongst gold producers as we advance Copperstone to production in the very near term, and continue to advance Brewery Creek towards a re-start decision."

William Sheriff, Executive Chair of Golden Predator, further added, "I have long been aware of and admired the Copperstone project, from its days as an open pit mine to its current incarnation as an underground operation. Golden Predator shareholders shall benefit from this rational consolidation and increased scale. Creating a more robust combined company, we believe that stakeholders in the Brewery Creek project, including the Tr'ondëk Hwëch'in First Nation, will benefit from the Transaction."

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