Golden Predator Mining to acquire Viva Gold

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Golden Predator Mining Corp. [GPY-TSXV; NTGSF-OTCQX] and Viva Gold Corp. [VAU-TSXV; VAUCF-OTCQB] said Wednesday March 3 that they have entered into a definitive agreement that will see Golden Predator acquire all of the outstanding shares of Viva Gold by way of a plan of arrangement.

The proposed arrangement brings together proven mine building expertise, jurisdictional diversification and two advanced stage gold development projects as the two companies merge their Nevada and Yukon assets and management to position the company as an emerging junior gold producer.

Golden Predator’s flagship asset is the former Brewery Creek gold mine in the Yukon. Golden Predator recently said the Yukon government is allowing the company to proceed with the restart of the Brewery Creek mine without having to re-enter the permitting process.

According to recent estimates, Brewery Creek contains an indicated oxide resource of 21.14 million tonnes at 1.125 g/t gold or 765,000 ounces. Recent estimates include an additional 8.57 million tonnes of inferred sulphide resources grading 0.985 g/t gold or 270,000 ounces.

Viva Gold is a gold exploration and development company with a focus on Nevada. Its key asset is 100% ownership of the advanced Tonopah Gold Project, a large land position of approximately 8,800 acres with demonstrated high-grade measured, indicated and inferred gold resources located on the prolific Walker Lake gold trend in Nevada.

The project is located about 30 km southeast of Kinross Gold Corp.’s [K-TSX; KGC-NYSE]  Round Mountain Mine and 20 km north of the town of Tonopah.

Under the plan of arrangement, shareholders of Viva will receive 1.60 Class A shares of Golden Predator for each share of Viva Gold. The exchange ratio represents a premium of approximately 35% over the 20-day volume weighted average price, and 35% to the 30-day volume weighted average price of Viva Gold shares on March 1, 2021.

In connection with the arrangement, Golden Predator is proposing to distribute 8.62 million common shares of C2C Gold Corp. [CTOC-CSE] to shareholders of record of Golden Predator immediately prior to closing of the arrangement by way of a return of capital transaction.

Viva Gold declined on the news, easing 11% or $0.03 to $0.25 on volume of 107,000. The shares previously traded in a 52-week range of 47.5 cents and $0.14.

Golden Predator shares eased 5% or $0.01 to 19 cents. The shares are currently trading in a 52-week range of 48 cents and 15 cents.


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