Arizona Gold and Golden Predator Announce Merger

Golden Predator’s 3 Aces Gold Project in southeastern Yukon Territory. Source: Golden Predator Mining Corp.

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Arizona Gold Corp. [TSX: AZG, OTCQB: AGAUF] and Golden Predator Mining Corp. [TSXV: GPY] earlier 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. The Transaction combines the fully permitted past-producing Copperstone gold mine in Arizona and the historic past-producing Brewery Creek gold mine in the Yukon.

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 Predator. 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.”

The shareholder meetings of Arizona and Golden Predator are expected to be held in August 2021. An information circular detailing the terms and conditions of the Transaction will be mailed to the shareholders of both companies in connection with the special shareholder meetings. All shareholders are urged to read the information circular once available, as it will contain important additional information concerning the Transaction.

Closing of the Transaction is subject to the receipt of applicable regulatory approvals and the satisfactions of certain other closing conditions customary in transactions of this nature, including, without limitation, court and exchange approval. Closing of the Transaction is anticipated to occur in September 2021.

Shares of both companies had been halted pending the news.


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