Explorer MegumaGold has completed its acquisition of Osprey Gold Development, consolidating their respective land packages in Nova Scotia.
Former Osprey president, and now MegumaGold board member, Cooper Quinn states that the combined company holds an “excellent” suite of assets, from near-resource expansion to completely untested targets 4 km along strike from operating openpit operations.
“The natural synergies between the Osprey and Meguma assets align with our vision and provide shareholders with exposure to advanced stage resource projects and district scale exploration upside potential. We welcome the Osprey shareholders to Meguma as we continue to build value in Nova Scotia,” comments MegumaGold’s Theo Van der Linde.
Pursuant to the arrangement, the outstanding common shares of Osprey were acquired by MegumaGold, and in exchange, shareholders of Osprey received an aggregate of 36 671 166 common shares of MegumaGold, representing 0.5 of a common share of MegumaGold for each Osprey share previously held.
In addition MegumaGold assumed Osprey’s obligations under outstanding share purchase warrants, pursuant to which former Osprey warrantholders now hold warrants entitling them to acquire an aggregate of 11 158 378 common shares of MegumaGold, and issued replacement stock options pursuant to which former Osprey stock option holders now hold options to acquire an aggregate of 2 382 500 common shares of MegumaGold.
MegumaGold has an aggregate of 142 318 288 common shares issued and outstanding, warrants to acquire an aggregate of 22 713 934 common shares, and stock options to acquire an aggregate of 11 732 500 common shares.
A finder’s fee of 2 566 982 common shares will be paid to an arms-length third party in connection with the transaction.
Meanwhile, MegumaGold increased the size of its board of directors to four, and appointed former Osprey directors Quinn and Jeffrey Wilson to join incumbent directors, Van der Linde and Fred Tejada.
Steven Stine has resigned from the board of directors effective immediately.