Binding Agreement For All-Cash Transaction
GT Gold Corp.(TSX-V:GTT) and Newmont Corporation (TSX: NGT) have entered into a binding agreement under which Newmont has agreed to acquire all of the outstanding shares of GT Gold that Newmont does not already own for C$3.25 per share in cash.
The total equity value pursuant to the Transaction is approximately C$456 million on a fully diluted basis. The Transaction Price represents a premium of 38% to the 20-day volume-weighted average price of GT Gold’s shares on the TSX-V as at March 9, 2021.
GT Gold’s flagship asset is the wholly-owned, 47,500 hectare Tatogga property, located in the Traditional Territory of the Tahltan Nation. This is part of the highly prospective Golden Triangle region of British Columbia, Canada.
GT Gold Executive Chair, Ashwath Mehra, said the deal provided an immediate and attractive premium for GT Gold shareholders.
“We are very pleased to be announcing this Transaction with Newmont today, representing the execution of our plan and the culmination of significant value creation for GT Gold shareholders since the formation of the company,” Mr Mehra said.
“The Transaction is a testament to the years of diligent, professional work by the entire GT Gold team.
“My fellow directors and I would like to express our thanks and appreciation to all who have been involved in successfully advancing the Tatogga project to this stage from discovery to sale in just over four years.
“The Transaction is not only a great outcome for our shareholders, but also one that we believe will benefit all our rightsholders and stakeholders in the coming years.”
Directors and senior officers of GT Gold, collectively owning approximately 12% of the outstanding shares of GT Gold, have entered into voting support agreements to support the Transaction. In addition, Ross Beaty, K2, and Muddy Waters, collectively owning approximately 31% of the outstanding shares of GT Gold, have entered into voting support agreements to support the Transaction.
