Business
DLV Resources Ltd. and West Red Lake Gold Mines Inc. Announce Binding Agreement for Business Combination
Vancouver, British Columbia--(Newsfile Corp. - August 16, 2022) - DLV Resources Ltd.   (...
About this update from West Red Lake Gold Mines Ltd
[{"type":"text","content":"DLV Resources Ltd. and West Red Lake Gold Mines Inc. Announce Binding Agreement for Business CombinationVancouver, British Columbia--(Newsfile Corp. - August 16, 2022) - DLV Resources Ltd. (TSXV: DLV.H) (\"DLV\") and West Red Lake Gold Mines Inc. (CSE: RLG) (\"RLG\") are pleased to announce that they have entered into an arm's length binding agreement (the \"Agreement\") pursuant to which DLV has agreed to acquire all of the issued and outstanding common shares of RLG in consideration for the issuance of 0.1215 of a DLV common share for each RLG common share acquired (the \"Transaction\"). Upon closing of the Transaction, it is intended that DLV will be listed on Tier 2 of the TSX Venture Exchange as a Mining Issuer and that the RLG common shares will be de-listed from the CSE.DLV has agreed to assist RLG with sourcing purchasers for a financing of flow-through shares at a price of $0.0475 per share for gross proceeds of up to $4,600,000 (the \"Financing\"). Completion of the Transaction is conditional upon the Financing being completed on or before August 31, 2022.Pursuant to the Transaction, the RLG shareholders will receive 0.1215 of a DLV common share for each RLG common share held. Holders of convertible securities of RLG will receive convertible securities of DLV as adjusted by the exchange ratio. It is expected that on completion of the Transaction, DLV will have approximately 51,986,723 common shares outstanding, of which 23,652,342, or 45.5% will be held by current RLG shareholders, 16,568,066, or 31.87% will be held by existing DLV shareholders (including 1,700,000 finders shares to be issued by DLV in connection with the Transaction), and 11,766,315, or 22.63% will be held by subscribers to the Financing.The Transaction is subject to customary closing conditions, including regulatory approvals, receipt of required approvals from the shareholders of RLG, to be obtained at a meeting of RLG and the entering into of a definitive business combination agreement by August 31, 2022. The parties have agreed that upon closing of the Transaction the Board of Directors of DLV will be reconstituted to consist of two nominees of DLV, two nominees of RLG and one nominee to be jointly agreed upon.RLG is a Toronto-based minerals exploration company focused on gold exploration and development in the prolific Re...