Moneta Gold (TSX:ME, OTCQX:MEAUF) Inc announced on Tuesday an agreement to acquire all of the issued and outstanding common shares of Nighthawk Gold Corp in an all-stock transaction.
Nighthawk Gold shareholders will receive 0.42 Moneta shares, on a pre-consolidation basis, for each Nighthawk share held.
Post merger, Moneta shares will consolidate on the basis of one post-consolidation share for every two pre-consolidation Moneta shares.
Moneta noted the combined portfolio consists of two large-scale, cornerstone, Canadian gold projects, Tower Gold and Colomac Gold, underpinned by 7.8 million gold ounces in the Indicated category and 10.0 million gold ounces in the Inferred category.
As well, Nighthawk Gold stated it intends to raise C$12.5 million in a concurrent bought deal equity financing through the issuance of 36,765,000 Nighthawk subscription receipts at a price of C$0.34 per receipt.
The company said net proceeds of the offering are expected to be used by the merged company to fund the exploration and advancement of the Tower Gold Project and Colomac Gold Project and for working capital and general corporate purposes.
The merger agreement is expected to close in the first quarter of 2024, and the concurrent financing is expected to be completed on or about December 19, 2023.
Shares of Moneta Gold (TSX:ME, OTCQX:MEAUF) slipped 6% to $0.84, while Nighthawk Gold shares fell 9% to $0.36 in early trading on Tuesday.
Contact Sean at sean@proactiveinvestors.com