501 0 Kommentare Brio Gold Agrees to Increased Offer from Leagold - Seite 2

Yamana Gold Inc., which holds approximately 53.6% of the outstanding Brio Gold shares, has entered into a support agreement with Leagold, and has agreed to vote its Brio Gold shares in favour of the Transaction. Yamana may terminate the support agreement in order to accept a superior offer, subject to a right to match in favour of Leagold.

"We are pleased to have reached an agreement with Leagold to combine both companies to create a large mid-tier gold producer with peer-leading growth," commented Gil Clausen, Brio Gold's President and CEO. "This transaction brings many near-term and long-term benefits to our shareholders. In addition to the immediate and significant premium, the combined company will have a solid production platform, strong cash position and additional cash flow to fund growth. Further, the combined company will have a broadened shareholder base, a larger public float and enhanced trading liquidity. We are confident that this combination, led by Leagold's experienced management team, will create additional value for our shareholders going forward."

Transaction Highlights for Brio Shareholders

Attractive upfront premium: The Consideration represents a 51% premium to Brio Gold's share price prior to the announcement of Leagold's intention to make an offer to acquire all of the outstanding shares of Brio Gold.
Ongoing ownership in a new leading intermediate precious metals producer: Brio Gold shareholders will have a 42% interest in the combined entity, which is expected to produce approximately 447,500 ounces in 2018, with potential for growth to over 700,000 ounces by 2020.
Strengthened growth profile: The combined company will have a peer-leading production growth profile, with potential to increase production to over 700,000 ounces per year at an AISC of approximately US$850/oz in 2020 through the restart of Brio Gold's fully-constructed Santa Luz mine and the addition of Leagold's Bermejal Underground project.
Diversified asset portfolio: Production from four operating mines in Brazil and Mexico, each with significant organic growth opportunities, and near-term expansion to five producing assets through the restart of Brio's Santa Luz mine in Brazil.
Enhanced capital markets profile and liquidity: The combined company will have a broadened shareholder base, an increased public float and benefit from increased trading liquidity and institutional investor interest.
Significant re-rating potential: With a diversified portfolio of producing assets in the Americas and near-term growth opportunities backed by a strong balance sheet and a proven management team, the combined company is well positioned for a re-rating, to the benefit Brio Gold shareholders.