AuRico Metals and Kiska Metals have entered into an arrangement agreement where AuRico will acquire each Kiska share for 0.0667 of an AuRico common share plus C$0.016/share. Based on AuRico’s December 22 closing share price, the transaction values the Kiska shares at approximately C$0.078 per share, placing the total value of the deal at C$9.6 million.

The combined company will have paying royalties focused on tier-1 jurisdictions, the Kemess development project in British Columbia, which is well advanced with a feasibility study recently released and an environmental assessment certificate expected in the near-term, and a large high-quality portfolio of earlier stage royalties and exploration projects with royalty generation potential.

“This transaction presents a unique opportunity to expand our royalty portfolio with a focus on Canadian assets,” Chris Richter, president and CEO of AuRico.

Kiska’s royalty portfolio consists of six existing royalties including royalties on the East Timmins and Boulevard properties operated by Kirkland Lake Gold and Independence Gold, respectively. In addition, Kiska’s six wholly-owned exploration projects present organic royalty creation opportunities.

Resource Center Whitepapers, Videos, Case Studies