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Gold Resource Corporation Enters Into Arrangement Agreement With Aquila Resources Inc.
DENVER, CO / ACCESSWIRE / October 6, 2021 / Gold Resource Corporation ( " GRC " or the " Company ") (NYSE American:GORO) is pleased to announce that it has ente
About this update from Gold Resource Corporation
[{"type":"text","content":" DENVER, CO / ACCESSWIRE / October 6, 2021 / Gold Resource Corporation ( \" GRC \" or the \" Company \") (NYSE American:GORO) is pleased to announce that it has entered into a definitive arrangement agreement (the \" Arrangement Agreement \") with Aquila Resources Inc. (\" Aquila \") (TSX:AQA) (OTCQB:AQARF) providing for the acquisition by GRC of all the issued and outstanding common shares of Aquila by way of a plan of arrangement under the Business Corporations Act (Ontario) (the \" Transaction \"). As announced by GRC on September 7, 2021, pursuant to the Transaction GRC will, through a wholly-owned subsidiary, acquire all the issued and outstanding Aquila shares for 0.0399 of a GRC share per Aquila share (the \" Exchange Ratio \"). Based upon the 20-day volume-weighted average price (\" VWAP \") of GRC's shares on the NYSE American stock exchange on September 3, 2021, being the last trading day prior to the date of the announcement of the Transaction, the Exchange Ratio represents a 29% premium to the 20-day VWAP of Aquila's shares on the Toronto Stock Exchange as of such date. The Exchange Ratio represents consideration of C$0.09 per Aquila share (the \" Per Share Price \"), reflecting a premium of 12.5%, based upon the closing prices of the Aquila shares and the GRC shares on September 3, 2021. The Per Share Price implies an aggregate acquisition price for 100% of the outstanding Aquila shares of approximately C$30.9 million. Upon closing of the Transaction, the existing GRC and Aquila shareholders will own approximately 85.1% and 14.9%, respectively, of the combined company on a fully diluted basis. Allen Palmiere, President and Chief Executive Officer of GRC, said: \"This Transaction offers an attractive opportunity to the shareholders of Aquila and GRC to develop the Back Forty Project using GRC's strong balance sheet and cash flows. In addition, the combination of our complementary gold-rich assets will enhance both our mineral inventory and jurisdiction diversification. The announcement by Aquila yesterday, that it had closed the sale of its Bend and Reef exploration properties, was an important step in the process for signing the Arrangement Agreement. With this Transaction, we look forward to becoming a new intermediate gold producer with a peer leading growth profile.\" Strategic Rationale for the Transaction As pr...