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TICKERS: TEN; TCEGF

Two Precious Metals Royalty Companies to Merge, Create New Entity
News Update

Source:

The new company will hold royalties on projects in North and South America.

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.

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Terraco Gold. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this interview, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Terraco Gold, a company mentioned in this article.





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