viewGreat Panther Mining Limited

Great Panther to bolster its assets in Mexico and Canada


Great Panther Silver (TSE:GPR) (NYSEMKT:GPL) has entered into a definitive arrangement agreement that will see the junior silver producer add to its portfolio of Mexican exploration and production assets by acquiring all of the issued and outstanding common shares of Cangold (CVE:CLD).

Under the terms of the all-share deal, valued at approximately C$1.7 million, Cangold shareholders will receive 0.05 common shares of Great Panther for each Cangold common share. Great Panther will increase its issued and outstanding share count by 1.5% to complete the transaction, which must go through a plan of arrangement process in the Supreme Court of British Columbia.

Through the acquisition, Great Panther will gain an option to acquire more than 6,000 hectares of the advanced stage Guadalupe de los Reyes gold-silver Project in Mexico. Diamond drilling by Vista Gold Corp in 2012 showed that the project has bulk tonnage potential while also confirming the presence of high grade gold-silver mineralization originally exploited in the 18th and 19th centuries.

Cangold also owns the Plomo Gold Project in Mexico, as well as the past-producing Argosy Gold Mine in the Red Lake mining district of Ontario, Canada.

Great Panther has proven its expertise in taking exploration assets through to production in Mexico; last month the silver producer bolstered the mineral resource estimate at its new San Ignacio satellite mine, which forms part of its Guanajuato Mine Complex. It increased indicated resources by more than 30 percent, and more than doubled inferred resources.

For the year ending December 31, 2014, the company posted record production of 3.19 million silver equivalent ounces, a 12 percent rise from 2013. Great Panther’s balance sheet had cash and equivalents of C$18.0 million at year-end 2014, net working capital of C$32.9 million, and no debt.

Cangold will convene a special shareholders meeting on May 22 to vote on the acquisition. Its board of directors, based in part on the recommendation of a special committee created to review the arrangement agreement, has advised its shareholders to vote in favour. The deal was first announced by the companies on February 26, 2015, when they press-released a binding letter agreement covering the acquisition.




Quick facts: Great Panther Mining Limited

Price: 1.25 CAD

Market: TSX
Market Cap: $440.8 m

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