Business
Guyana Precious Metals Inc. signs agreement to acquire DPG Resources Inc.
TORONTO , May 28, 2013 /CNW/ - Guyana Precious Metals Inc. ( " GPM " ) (TSXV:GPM), i...
About this update from Gpm Metals Inc.
[{"type":"text","content":"\n\n\nTORONTO, May 28, 2013 /CNW/ - Guyana Precious Metals Inc. (\"GPM\") (TSXV:GPM), is pleased to announce that it has entered into a binding letter\n agreement (the \"Letter Agreement\") dated May 24, 2013 for the acquisition of 100% of the common shares\n of DPG Resources Inc. (\"DPG\"), a company incorporated under the laws of the Province of Ontario\n (the \"Acquisition\"). The terms of the Letter Agreement require the completion of certain\n conditions precedent to the Acquisition, including among other things,\n satisfactory due diligence, execution of a definitive agreement and\n receipt of all necessary regulatory and shareholder approvals.\n\n\nUpon closing of the Acquisition, (i) each common share of DPG\n outstanding shall be exchanged for one common share of GPM and one\n common share purchase warrant of GPM (each, a \"Warrant\"); and (ii) there will be no convertible securities of DPG\n outstanding.  Each Warrant shall entitle the holder thereof to acquire\n one additional common share of GPM at an exercise price of $0.10 for a\n period of two years from the date of issuance thereof.  DPG has no\n convertible securities outstanding. Based on the number of securities\n of GPM and DPG currently outstanding, immediately following the closing\n of the Acquisition, it is anticipated that (i) there will be\n approximately 110,514,513 common shares of GPM outstanding on a\n non-diluted basis, or which former shareholders of DPG will own\n approximately 18,700,000 such common shares (or approximately 16.9% of\n the outstanding shares of the resulting issuer) and the current\n shareholders of GPM will own approximately 91,814,513 common shares (or\n 83.1% of the outstanding shares of the resulting issuer); and (ii)\n there will be approximately 62,425,000 convertible securities of GPM\n outstanding, inclusive of the Warrants.\n\n\nFollowing the Acquisition, Peter Mullens, the President of DPG, will\n remain in that capacity and will continue to seek out acquisitions of\n mineral exploration properties.  There will be no change to the board\n of directors or the management of GPM as a result of the Acquisition.\n\n\nThere are currently no shareholders of DPG who own 20% or more of all of\n the issued and outstanding common shares of DPG. There are no current\n non-arm's length parties of GPM wh...