Business
Cerrado Gold To Acquire Voyager Metals
Combined entity would create a mid tier market capitalization company once all assets are in oper...
About this update from Cerrado Gold Inc
[{"type":"text","content":"Cerrado Gold To Acquire Voyager MetalsCombined entity would create a mid tier market capitalization company once all assets are in operationAcquisition follows strong production growth at MDN and a very robust Feasibility Study at MDC expected by end of MaySprott Streaming and Royalty US$10 million Equalization Stream Financing ClosedTORONTO, ON / ACCESSWIRE / March 7, 2023 / Cerrado Gold Inc. [TSXV:CERT] [OTCQX:CRDOF] (\"Cerrado\" or the \"Company\") has entered into a definitive agreement (the \"Arrangement Agreement\") with Voyager Metals Inc. (TSXV: VONE) (\"Voyager\") pursuant to which Cerrado will acquire all of the issued and outstanding shares of Voyager (each, a \"Voyager Share\") not already owned by Cerrado by way of a plan of arrangement under Business Corporations Act (Ontario) (the \"Arrangement\"). Upon completion of the Arrangement, Cerrado will, indirectly through a wholly-owned subsidiary, own a 100% interest in the Mont Sorcier Iron and Vanadium project located near Chibougamou, Quebec (\"Mont Sorcier\").Mont Sorcier is a well advanced, large, long-life and economically robust Project in a tier one mining jurisdiction. In September 2022, Voyager completed a Preliminary Economic Assessment (the \"PEA\") on Mont Sorcier, which outlined a project with an after-tax NPV of US$1.6 Billion and IRR of 43% producing 5.0MM tpa of iron concentrates over a mine life of 21 years with annual free cash flow of US$235 million. The project is currently advancing towards completion of a bankable Feasibility Study expected by the end of 2023.Under the terms of the Arrangement Agreement, Voyager shareholders would receive one (1) common share of Cerrado (\"Cerrado Share\") for every six (6) common shares of Voyager (the \"Exchange Ratio\"). The Exchange Ratio implies consideration of C$0.1523 per Voyager Share (the \"Transaction Price\"), based on the 20 day volume weighted average price (‘VWAP\") of the closing price of Cerrado common shares on the TSX Venture Exchange (the \"TSXV\") on March 3, 2023, representing a 16.8% premium to 20-day VWAP of Voyager on the TSXV on March 3, 2023. Upon closing, the Arrangement would result in Voyager shareholders owning approximately 18% of the Cerrado Shares outstanding upon closing of the Arrangement.Holders of Voyager options will receive equivalent securities of Cerrado adjusted i...