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First Mining Finance to acquire Goldrush Resources

Published: 20:10 24 Nov 2015 GMT

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Upon completion of the arrangement, Goldrush's shares will be de-listed from the TSXV

First Mining Finance (OTCMKTS:FFMGF) (CVE:FF), a mineral bank which finances mining operations in Mexico and the U.S., agreed to acquire Goldrush Resources (CVE:GOD), a miner focused on West Africa.

First Mining agreed to acquire all of the issued and outstanding common shares of Goldrush in exchange for 0.0714 of a common share of First Mining for each Goldrush Share held, the Vancouver, British Columbia-based company said in a statement on Tuesday.

On completion of the deal, Goldrush will become a wholly-owned unit of First Mining and former shareholders of Goldrush will hold 3.9% of the issued and outstanding shares of First Mining.

The deal implies a value of C$0.026 per Goldrush share based on the closing prices of each company's common shares on the TSX Venture Exchange on November 23.

Upon completion of the arrangement, Goldrush's shares will be de-listed from the TSXV, and it is anticipated that First Mining will apply to cause Goldrush to cease being a reporting issuer under applicable Canadian securities laws.

"We believe the current market climate for junior exploration companies remains very challenging and thus requires consolidation and that only companies with attractive assets and supportive shareholder bases will survive this market cycle which may last for years," Keith Neumeyer, Chairman of First Mining, said in the statement.

Shares of First Mining closed up 2.8% at C$0.37 on Tuesday. The stock is down 24% this year.

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