Business
Emerick to Acquire Western European Properties and Apply to Graduate to Tier 2 of TSXV
VANCOUVER, May 8, 2012 /CNW/ - Emerick Resources Corp. (TSXV: ERC) (" Emerick " or the " Co...
About this update from Trident Resources Corp.
[{"type":"text","content":"\n\n\n\n\n\nVANCOUVER, May 8, 2012 /CNW/ - Emerick Resources Corp. (TSXV: ERC) (\"Emerick\" or the \"Company\") is pleased to announce that it has entered into a non-binding letter\n agreement dated April 26, 2012 to acquire all of the outstanding shares\n of Medgold Resource Ltd. (\"Medgold\") (the \"Transaction\"), a private company incorporated in England and Wales focused on the\n exploration and development of precious and base metals in Western\n Europe.\n\n\nThe Proposed Transaction\n\n\nTo acquire Medgold, the Company will issue 32,287,500 shares in its\n capital stock to Medgold's shareholders in proportion to their\n respective shareholdings in Medgold.  Emerick's resulting issued\n capital will be 52,416,078 shares, of which Medgold's shareholders will\n own 61.6%.  All outstanding options in Emerick and Medgold will be\n cancelled.  The Company's current working capital position of\n approximately $500,000 will increase to $1.3 million.\n\n\nRalph Rushton will remain as Director and President of Emerick and Simon\n Ridgway as Chairman of the Board. Upon completion of the Transaction,\n Dan James will be appointed as Director and CEO of Emerick and will be\n joined on the Board by David Hall and Jeremy Martin, all of whom are\n directors of Medgold.  Medgold has the right to appoint one additional\n representative to the Board after completion of the Transaction.\n\n\nBased on the terms of the Transaction, Emerick will apply to the\n Exchange to have its listing graduated from the NEX board to Tier 2 of\n the TSX Venture Exchange (the \"Exchange\") as a resource issuer. Upon completion of the Transaction, the Company\n will be known as \"Medgold Resources Corp.\". Medgold is at arm's length\n to the Company, and none of the directors or officers of the Company\n are directors, officers or shareholders of Medgold.\n\n\nThe Transaction will be completed by way of a legally binding sale and\n purchase agreement (\"SPA\") which will be entered into between Emerick and each of Medgold's\n shareholders. The completion of the transaction will be subject to a\n number of conditions, including, inter alia, entering into the SPA,\n approval of both Medgold's and Emerick's respective boards, approval of\n the Transaction by Emerick's shareholders, completion of a 43-101\n compliant technical report on one of ...