Royal Road Minerals Ltd. (CVE:RYR) said on Friday it has made an offer to buy Caza Gold Corp. (CVE:CZY) in an all-share deal.
Holders of Caza shares that accept the offer will receive 0.16 of a Royal Road share in exchange for each Caza share acquired by Royal Road under the offer.
The offer will be open for acceptance until 11:59 p.m. PT on Feb. 27, 2017, unless the offer is extended or withdrawn by Royal Road.
The board of directors of Caza has unanimously determined that the offer is fair to Caza shareholders and in the best interest of Caza and Caza's shareholders, and unanimously recommends that Caza's shareholders accept the offer and deposit their Caza shares to the offer.
As previously announced, Royal Road and Caza have entered into an amended support agreement, pursuant to which Caza agreed to support the offer. Royal Road also entered into amended lock-up agreements with Caza's largest shareholder and its directors and officers that hold Caza shares, whereby these Caza shareholders have each agreed to tender all of their Caza shares to the offer.
Collectively, these supporting Caza shareholders hold 82% of Caza shares.