Globex Mining’s Mooseland royalty gold property being  acquired by St. Barbara, Nova Scotia
Globex Mining Enterprises Inc. [GMX-TSX; GLBXF-OTCQX; G1MN-Germany] reported NSGold Corp. [NSX-TSXV] announced that, subject to shareholder approval, it has entered into a binding acquisition agreement dated December 22, 2021 and related agreements with 13611647 Canada Limited, a newly-incorporated wholly-owned subsidiary of Atlantic Mining NS Inc., whereby Atlantic will acquire all of the issued and outstanding shares of NSGold at a price of $0.40 per share in cash.
The transaction will be effected by way of an amalgamation of NSGold and the purchaser under the Canada Business Corporations Act to form an amalgamated corporation. Under the amalgamation, each issued and outstanding common share of NSGold will be exchanged for one redeemable preferred share of the merged company which will immediately be redeemed for $0.40 cash per share. The total consideration is approximately $7.9 million. Atlantic is a subsidiary of St. Barbara Limited [SBM-ASX].
Globex currently owns 1,745,408 NSGold shares. When the transaction is approved by shareholders, Globex will realize a gain of $698,163.20. In addition, Globex holds a 2% Gross Metal Royalty on the Mooseland Gold Mine.
NSGold announced on September 16, 2020 an updated NI 43-101 Inferred Resource of 3,454,000 tonnes with an average diluted grade of 4.71 g/t containing 523,000 ounces of gold (MineTeck International Limited of Halifax Nova Scotia, updated NI 43-101 Resource Report for the Mooseland Gold Property 110 km northeast of Halifax, Nova Scotia, effective September 16, 2020).
In mid-day trading on December 23, shares of NS Gold had gained 56%, or $0.14, to $0.39.