Atlantic Gold Corp. has entered into an agreement with St. Barbara Ltd., who will purchase the company for C$802 million. Atlantic shareholders will receive C$2.90 in cash per Atlantic share held plus shares in SpinCo, which holds Atlantic’s interests in Velocity Minerals Ltd.
SpinCo implies additional consideration of approximately C$12 million to Atlantic shareholders, or approximately C$0.05 per Atlantic share, for total cash plus SpinCo consideration of approximately C$2.95 per share. The C$2.95 per share offer represents a 41.1% premium to the closing price of Atlantic shares on the TSX Venture Exchange on May 14 and a 40.8% premium to the volume weighted average price of Atlantic shares over the last 30 trading days.
Atlantic Gold is growing gold production in Nova Scotia beginning with its Moose River Consolidated (MRC) project phase one open-pit gold mine, which declared commercial production in March 2018, and its phase two Life of Mine Expansion.
Atlantic Chairman and Chief Executive Officer Steven Dean said, “St. Barbara’s C$2.90 cash per share offer delivers an immediate and attractive premium to our shareholders. It not only recognizes the value of our current plan for the MRC mine, but rewards shareholders for the future growth and exploration potential that defines MRC as a truly world-class asset.”