Golden Predator Completes Merger; Acquires Brewery Creek Project and Completes Concurrent Financing
PR-Inside.com: 2014-04-21 18:36:30
Edmonton, Alberta (FSCwire) - Golden Predator Mining Corp. (TSX.V: GPY) (formerly Northern Tiger Resources Inc.) (the “Company is pleased to announce it has completed the merger with Redtail Metals Corp. Redtail and the acquisition of a 100% interest in the Brewery Creek Project, Yukon, as originally announced on October 28, 2013 and December 17, 2013.
At closing, the Company issued an aggregate of 4,773,405 common shares to former Redtail shareholders, representing approximately 17% of the Company’s issued and outstanding shares on completion of all related transactions. As a result of the closing, Redtail is a wholly-owned subsidiary of the Company and has ceased trading on the TSX Venture Exchange.
Following completion of a concurrent reorganization of Americas Bullion Royalty Corp. AMB, to Till Capital Ltd. Till, Golden Predator acquired all of the Yukon assets previously held by AMB in exchange for 1,571,429 common shares of the Company having an aggregate value of CDN$550,000, and a convertible promissory note in the principal amount of CDN$4,700,000 bearing interest at 6% per annum and payable over a period of three years (the “Acquisition. The balance of the purchase price was satisfied by the grant to Till of a royalty interest in each of the Company’s properties held at closing. As a result of the Acquisition, the Company acquired AMB’s Yukon mineral properties, including Brewery Creek, and AMB’s accumulated tax losses in the amount of approximately CDN$40,000,000.
In the course of the transaction:
Till subscribed for 6,428,571 common shares of the Company for proceeds of CDN$1,800,000 pursuant to a concurrent private placement;
Till converted certain outstanding debts of the Company and Redtail owed to Till in exchange for 2,414,774 common shares of the Company issued at a deemed price of CDN$0.21 per common share;
3,809,524 common shares were issued to Till at a deemed price of CDN$0.21 per common share upon conversion of the convertible promissory notes issued as partial payment for the Grew Creek project acquired in December 2013; and
The Company issued an aggregate of 357,143 “flow-through” common shares to certain other subscribers for gross proceeds of $100,000. The “flow-through” common shares are subject to a four month statutory hold period expiring on August 18, 2014.
Following these transactions, Till owns directly and indirectly, 14,963,584 shares, or approximately 54% of the Company’s issued and outstanding shares. This number includes shares which Till received in its capacity as a former shareholder of Redtail.
Company Assets – Post Arrangement
On February 21, 2014 Northern Tiger Resources Inc. and Redtail Metals Corp. shareholders voted 98% in favor of the merger and approved the Acquisition. The Company’s key assets now include:
Brewery Creek Project;
Grew Creek project;
Sonora Gulch project;
Clear Lake deposit; and
Cash position of approximately $1.8 mm.
Golden Predator Mining Corp.
Golden Predator’s corporate mandate is to advance the Brewery Creek Mine towards production by obtaining a joint venture partner. The Brewery Creek Mine operated from 1996 to 2002, before closing down due to low gold prices. Golden Predator has identified significant resources and engineering, environmental and heritage studies are underway to support current permitting requirements. A 2012 Socio Economic Accord with the Tr'ondek Hwech'in is in place with respect to Brewery Creek. The Company also holds additional projects with current resources and/or new discovery potential, including 3Aces, Grew Creek and the Marg & Clear Lake deposits.
For additional information:
Greg Hayes, Chief Executive Officer
(587) 524 1599
William M. Sheriff, Director
(208) 635 5415
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance. There are numerous risks and uncertainties that could cause actual results and the Company’s plans and objectives to differ materially from those expressed in the forward-looking information. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, the Company assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.
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Source: Golden Predator Mining Corp (TSX Venture:GPY, TSX Venture:NTR) www.goldenpredator.com
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