Business
Americas Silver Corporation and Pershing Gold Corporation Announce Business Combination
TORONTO, Sept. 30, 2018 /CNW/ -- Americas Silver Corporation (TSX: USA) (NYSE American: USAS) ("Americas Silver") and Pershing Gold Corporation (NASDAQ: PGLC) (
About this update from Americas Gold And Silver Corporation
[{"type":"text","content":" TORONTO, Sept. 30, 2018 /CNW/ -- Americas Silver Corporation (TSX: USA) (NYSE American: USAS) (\"Americas Silver\") and Pershing Gold Corporation (NASDAQ: PGLC) (TSX: PGLC) (FWB: 7PG1) (\"Pershing\") are pleased to announce that they have entered into a definitive agreement (the \"Agreement\") to complete a business combination (the \"Transaction\") and create a low-cost, precious metal growth company in the Americas. Highlights of the Transaction Key investment highlights of the combined company include: Diversified portfolio of precious metal assets in the Americas: Combines two producing polymetallic mines in Mexico and Idaho that are expected to produce approximately 7.0 million silver equivalent ounces with an attractive shovel-ready, precious metal development project in Nevada with the potential, demonstrated by a feasibility study, to add approximately 91,000 gold ounces annually. Enhanced growth and scale: Near-term precious metal production growth from Relief Canyon and Zone 120 and ongoing ramp-up at the San Rafael mine is expected to meaningfully improve production and cash flow in 2020 and beyond. Proven management team and Board: Demonstrated experience in financing, acquiring, building and operating open pit and underground mines. Strong financial position: Increasing cash flow generation from the San Rafael mine and greater access to capital to fund the development of Relief Canyon. Enhanced capital markets profile: The combined company is expected to appeal to a broader institutional shareholder base, increase research coverage, and improve share trading liquidity. Compelling value proposition: Leading leverage among junior precious metal equities and attractive relative valuation to support a potential future re-valuation. Unanimous board approval and significant Pershing shareholder support: The Board of Directors of both companies have unanimously recommended support for the Transaction. Additionally, Mr. Barry Honig has entered into an unconditional lock-up agreement in favour of the Transaction, representing support for the Transaction of approximately 31% of the outstanding common shares and 87% of the outstanding preferred shares of Pershing. \"This transaction aligns with our stated initiative of building a profitable and low-cost precious metal company in the Americas by operatin...