Terraco Gold Corp. (TEN:TSX.V; TCEGF:OTCPK) announced in a news release it entered into a definitive agreement to be acquired by Sailfish Royalty, thereby creating a new, growth-focused royalty entity.
Sailfish is a precious metals royalty and streaming company with assets in Brazil and Nicaragua. Terraco's portfolio is Nevada based.
"This transaction presents a unique opportunity for Terraco shareholders to gain exposure to a diverse portfolio of royalties, with exposure to a multimillion ounce gold project portfolio, while also benefiting from a strong financial backing and an increased capital markets profile," Terraco President and CEO Todd Hilditch said in the release.
The release noted the following highlights of the combined company:
- The consolidated company will hold an array of precious metals royalties, ranging from the exploration stage through to production;
- Geographic diversification of the combined royalty portfolio within the Americas, including Nevada, Mexico, Brazil and Nicaragua;
- Royalties with well-established property owners, including Waterton Global Resource Management, Eldorado Gold Corporation and Endeavour Silver Corp.;
- Support from Wexford Capital LP, an SEC registered investment advisor with approximately US$3 billion of assets under management, which is the manager of hedge funds that collectively are the largest shareholders of Sailfish (the “Wexford Funds”);
- Platform for additional royalty consolidation in the precious metals space;
- Near term post-closing, shareholder friendly initiatives including a possible spinoff of the Gavilanes and Almaden-Nutmeg Mountain properties into a separate exploration company or a monetization of these assets; and
- A normal-course issuer bid on behalf of Sailfish to acquire over 1.9 million shares of Sailfish over next 12 months.
Akiba Leisman, CEO of Sailfish, stated, "We are very pleased to announce this exciting transaction which brings together our combined royalty portfolios into a new, growth-oriented royalty vehicle. Terraco's royalty holdings on the development-stage Spring Valley Gold Project in Nevada will give our shareholders exposure to one of the best known undeveloped mining properties in the region."
Sailfish will pay 0.12 of a common share of Sailfish for each Terraco share, which represents a roughly 53% premium to the trailing 20-day volume weighted average price of Terraco's shares as of June 19, 2019.
Once the transaction closes, Sailfish will appoint Hilditch to its board of directors.[NLINSERT]
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