The acquisition will result in former Gold Matter shareholders holding about 4% of the issued and outstanding common shares of TerraX. Gold Matter shareholders agreed to a four-month hold on the TerraX shares to be issued to them.
Also, TerraX appointed Gerald Panneton, Detour Gold founder, as its executive chairman and Louis Dionne, former Detour Gold mining engineer, as director. Panneton has 35 years of technical expertise in exploration and mine development, highlighted by the successful buildout of Detour Gold.
"These gentlemen add significant depth and profile to our board of directors," TerraX President and CEO David Suda said in the release. "Together we share a vision to build Canada's next leading gold company."
Panneton said in the release, "Louis and I have experienced tremendous teamwork over the years spent together, since 1994, and we look forward to repeating our past success. I expect his expertise and track record in mining and mineral operations will be of great value to TerraX, as we move the Yellowknife project forward."
Related to his appointment, Panneton agreed to invest $360,000 in TerraX, the transaction due to close at the same time as the acquisition.
Finally, TerraX agreed to accept additional subscriptions on the same terms as Panneton's investment, up to a $2 million maximum, on a nonbrokered private placement basis.[NLINSERT]
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