GoGold Resources (V.GGD) pops 12% on successful Animas share acquisition

Gaalen Engen Gaalen Engen, Stockhouse.com
0 Comments| March 3, 2014


GoGold Resources (TSX-V:GGD, StockForum), a Halifax Nova Scotia-based resource firm with properties in Mexico and Canada, announced today that the company was informed by the depository of its Animas takeover offer that as of February 28, 2014, GoGold had acquired a total of 60.19 million common shares of Animas Resources and 12.5 million share purchase warrants for an aggregate of 82.8% of Animas' outstanding shares.

 

According to the news release, GoGold's offer has expired and will not be extended and pursuant to the offer, holders of Animas shares will be entitled to $0.07 in cash and 0.0851 of a common share of GoGold for each Animas share.

 

The offer was intended to enable GoGold to purchase beneficial ownership of all the Animas shares and Animas warrants with the company planning a further acquisition offer to snap up the balance of Animas securities as outlined in the offer circular.

 

Terms of the offer have Animas CFO, Dana Hatfield, joining the GoGold board of directors and taking on the role of interim Chairman until GoGold completes the subsequent acquisition transaction.

 

GoGold CEO, Terry Coughlan, commented, “We are very pleased with the results of the offer and will proceed to acquire the remaining Animas shares as soon as possible. Our geological teams are on the ground working at the past producing Santa Gertrudis gold mine in an effort to outline a resource and lay the groundwork for a prefeasibility study to commence as soon as possible.”

 

He went on to add, “I would also like to thank Mark Brown and Winnie Wong of Animas for their hard work and cooperation throughout the offering and tendering process.”

 

Then he concluded, “We welcome all Animas shareholders and look forward to delivering significant value to all of our shareholders as a result of this transaction.”

 

GoGold was in the news recently when the company provided an update on Parral construction progress.

 

Shares rose 12.08% on the news to $1.67 per share.

 

Currently there are 133.0m outstanding shares with a market cap of $222.1 million.


Tags: INDUSTRIAL METALS & MINERALS

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