Canadian company White Tiger Gold Ltd is to buy Century Mining Corp in an all stock deal. Each share of Century Mining will be exchanged with 0.4 of a White Tiger Gold share.
The Toronto based investing company will thus gain 39% of the new company and Century shareholders will retain 61%. The takeover is yet to receive shareholder approval as well as regulatory and court approval.
After the merger Chief Executive Officer Daniel Major of Century Mining will be the president of the new company. While the Chief Executive Officer of White Tiger Gold, Geoffrey Cowley will be the Chief Operating officer. Maxim Finskiy, White Tiger’s executive chairman will remain the executive chairman of the new company.
The all stock friendly merger is being valued at $743 million. The deal will allow White Tiger gold to get access of the Century Mining flagship project in Lamaque in Quebec and its gold mine in Peru. This is the first takeover for the company after its went public on the Toronto Stock Exchange about two months ago.
Mr Geoffrey Cowley said that the newly formed company will feature a robust portfolio of production, development and exploration assets which he expected will have greater access to the financial markets.