Canadian juniors MegumaGold and Osprey Gold, with projects in Nova Scotia’s largest historic bullion district, are merging their businesses to create “a leading precious metals exploration company” in a province experiencing a gold exploration boom.
The all-paper business combination will see Vancouver-based Osprey’s shareholders receive MegumaGold stock equal to an at an exchange ratio of one Meguma share for every two Osprey shares owned.
Halifax-based MegumaGold already
had a 19% stake in Osprey, which it acquired in August last year. The company holds
7,176 hectares of exploration licences, which are adjacent to Osprey’s flagship
Goldenville project.
“We believe this consolidation of assets is the logical step in building a company optimally positioned to capitalize on the upside of the developing gold camp in Nova Scotia,” MegumaGold’s president, Theo Van der Linde, said in a statement.
“Combining Osprey’s assets of
Goldenville and Caribou with MegumaGold’s developmental projects contained
within its under-explored 107,000 ha land position presents a compelling
opportunity for our shareholders,” he said.
More than 60 years after Nova Scotia’s last gold mine stopped producing the yellow metal, the Atlantic province is attracting local and international companies lured by its untouched riches and the easy access to most assets, located nearby existing highways.
Before Meguma-Osprey’s announcement, one of the most touted deals was the acquisition of Atlantic Gold by Australia’s St. Barbara last year. With the move, the Melbourne-based miner scooped up the Moose River complex, which comprises one producing open-pit (Touquoy) and three others in development (Beaver Dam, Fifteen Mile Stream and Cochrane Hill).