Business
Falco Resources Ltd. to Acquire Golden Queen Mining Consolidated Ltd.
MONTRÉAL, Feb. 11, 2020 (GLOBE NEWSWIRE) -- Falco Resources Ltd. (TSX-V: FPC) ("Falco" or the "Corporation") and Golden Queen Mining Consolidated Ltd. (NEX: GQM
About this update from Falco Resources Ltd.
[{"type":"text","content":" MONTRÉAL, Feb. 11, 2020 (GLOBE NEWSWIRE) -- Falco Resources Ltd. (TSX-V: FPC) (\"Falco\" or the \"Corporation\") and Golden Queen Mining Consolidated Ltd. (NEX: GQM.H, OTCQB: GQMND) (\"Golden Queen\") are pleased to announce that they have entered into a definitive arrangement agreement dated February 10, 2020 (the \"Arrangement Agreement\") pursuant to which Falco has agreed to acquire all of the issued and outstanding common shares of Golden Queen (collectively, the \"Golden Queen Shares\") (the \"Acquisition\"). The Acquisition is expected to be completed by way of a statutory plan of arrangement under the Business Corporations Act (British Columbia) (the \"Arrangement\"). Through this non-cash transaction, Falco is offering a 15% premium on the forecasted net cash balance of Golden Queen at the closing of this transaction, in consideration for the issuance of 15,968,075 common shares of Falco (each whole share, a \"Falco Share\") to holders of Golden Queen Shares (\"Golden Queen Shareholders\"). Luc Lessard, President and Chief Executive Officer of Falco, stated: “We are pleased to reach this agreement with Golden Queen as it will provide Falco with a stronger balance sheet and a broader shareholder base which will benefit from the development of the Horne 5 Project. In addition, we believe that Falco has acquired cash at a reasonable price, in the context of the challenging equity market. With this transaction, Falco will secure approximately $4.2 million in cash resources which can be invested on the Horne 5 Project.” Guy Le Bel, Chief Executive Officer and Chief Financial Officer of Golden Queen, stated: “The board of directors mandated that we focus the search for an advanced gold project within North America while balancing potential risks and return on behalf of the Golden Queen Shareholders. The Horne 5 Project is a world class +6.0 M oz AuEq in proven and probable reserves and is located in a mine permitting-friendly jurisdiction. We are confident in this project’s execution ability with the Falco Resources team. Further, our shareholders receive an immediate premium to the cash and value of the company in providing this project, creating a positive transaction for both sides.” The Horne 5 Project proven and probable mineral reserves are distributed as follows: Mineral Reserves1 Tonnes (Mt) Au ...