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MegumaGold closes acquisition of Osprey Gold to form leading precious metals explorer in Nova Scotia

The all-paper deal consolidates highly prospective ground in Nova Scotia by combining Osprey’s historically producing projects with the underground exploration ground owned by Meguma

Megumagold Corp. -
Meguma acquired all of Osprey's shares at an exchange ratio of one Meguma share for every two Osprey shares owned

MegumaGold Corp (CSE:NSAU) (OTCMKTS:NSAUF) announced Monday it has completed its acquisition of Nova Scotia-focused Osprey Gold Development Ltd (CVE:OS) in an all-paper deal.

The deal consolidates highly prospective ground in Nova Scotia by combining Osprey’s historically producing projects with the underground exploration ground owned by Meguma, creating a leading precious metals explorer in the Canadian province.

READ: MegumaGold Corp and Osprey Gold ink definitive merger deal to create leading Nova Scotia explorer

In a statement, Meguma CEO Theo Van der Linde told shareholders that the company is executing on its plan of consolidating assets in an “up and coming” gold district.

“The natural synergies between the Osprey and Meguma assets align with our vision and provide shareholders with exposure to advanced stage resource projects and district scale exploration upside potential,” Van der Linde said. “We welcome the Osprey shareholders to Meguma as we continue to build value in Nova Scotia.”

Map of Meguma's and Osprey's projects in Nova Scotia

Osprey’s former president Cooper Quinn told investors that the combined company holds an “excellent suite of assets” that ranges from near-resource expansion to untested targets along strike from operating open pit mines.

Quinn, along with former Osprey director Jeffrey Wilson, will join Meguma’s incumbent directors Van der Linde and Fred Tejada to form a new board. Former Meguma board member Steven Stine has resigned from his position, the company said Monday, wishing him the “best of luck” in the future.

The Halifax-based firm said it plans to complete targeting, permitting and commence drilling programs at Caribou, Killag, and Touquoy West in the near term, along with starting a detailed ground survey program on the optioned Genius Metals property. Longer term, Meguma plans to delineate additional mineral resources and advance existing early-stage exploration targets to incorporate them into its resource inventory over multiple deposits across the Meguma terrane.

Deal terms

Under the terms of the deal, Meguma acquired all of Osprey's shares at an exchange ratio of one Meguma share for every two Osprey shares owned. In addition, Meguma assumed Osprey’s obligations under outstanding share purchase warrants so that Osprey warrantholders now hold warrants entitling them to acquire 11,158,378 Meguma shares, and issued replacement stock options under which former Osprey stock option holders now hold options to acquire an aggregate of 2,382,500 shares of Meguma. 

In connection with the deal closing, Osprey waived the previously announced condition for Meguma to complete a concurrent private placement.

Meguma will pay a finder’s fee of 2,566,982 shares to an arms-length third party in connection with the transaction.

Osprey shares will be delisted from the TSX Venture Exchange on Tuesday September 15, 2020.

Contact Angela at angela@proactiveinvestors.com

Follow her on Twitter @AHarmantas

Quick facts: Megumagold Corp.

Price: 0.18 CAD

CSE:NSAU
Market: CSE
Market Cap: $18.55 m
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