MegumaGold to merge with Osprey Gold

Canadian juniors MegumaGold (CSE: NSAU; US-OTC: NSAUF) and Osprey Gold Development (TSXV: OS; US-OTC: OSSPF), with projects in Nova Scotia’s largest historic bullion district, are merging their businesses to create “a leading precious metals exploration company” in a province experiencing a gold exploration boom.

The all-stock business combination will see Vancouver-based Osprey’s shareholders receive MegumaGold stock at an exchange ratio of one Meguma share for every two Osprey shares owned.

Halifax-based MegumaGold already had a 19% stake in Osprey, which it acquired in August 2019. MegumaGold holds 72 sq. km of exploration licences, which are adjacent to Osprey’s flagship Goldenville project.

“We believe this consolidation of assets is the logical step in building a company optimally positioned to capitalize on the upside of the developing gold camp in Nova Scotia,” Theo Van der Linde, MegumaGold’s president, said in a statement.

“Combining Osprey’s assets of Goldenville and Caribou with MegumaGold’s developmental projects contained within its underexplored 1070 sq. km land position presents a compelling opportunity for our shareholders,” he said.

Sean Kirby, executive director of the Mining Association of Nova Scotia (MANS), said the deal was great news for the companies and the province, as it creates additional opportunities for job creation and the opening of new mines.

“A poll recently released by Atlantic Gold shows that 76% of Nova Scotians support gold mining because of the jobs and economic opportunity it creates,” Kirby stated.

More than 60 years after Nova Scotia’s last gold mine stopped producing the yellow metal, the Atlantic province is attracting local and international companies lured by its untouched riches and easy access to assets, often located near existing highways.

Before Meguma-Osprey’s announcement, one of the most touted deals was the acquisition of Atlantic Gold by Australia’s St. Barbara last year. With the move, the Melbourne-based miner scooped up the Moose River complex, which comprises one producing open-pit (Touquoy) and three other projects in development (Beaver Dam, Fifteen Mile Stream and Cochrane Hill).

— This article first appeared on our sister publication, MINING.com.