Vancouver – Capital Gold (CGC-T) and Nayarit Gold (NYG-T) have agreed on an all-share merger deal to create a Mexico-focused company with one producing gold asset and another that is making its way towards a production decision.
The deal, which is subject to shareholder approval, will see Nayarit shareholders receive 0.134 Capital Gold shares for each Nayarit share held. The merger will leave Nayarit shareholders controlling just under 20% of the outstanding shares of Capital Gold.
The board of directors for the combined company will consist of the current board for Capital Gold plus one member from Nayarit. The deal is subject to all members of both boards endorsing the deal to shareholders.
Capital Gold owns and operates the El Chanate open pit, heap leach gold mine in Sonora, Mexico, which is pumping out 60,000 oz. gold a year. Nayarit is continuing to build upon the resource estimate and preliminary economic analysis at its Animas-Del Norte target, which is within its 104 square km Orion Project in the state of Nayarit, Mexico.
Capital Gold’s stock was down 10¢ on the day to close at $3.55; the company has a 52-week trading range of $2.40 to $4.52 and 48.5 million shares outstanding after a recent 4-to-1 rollback. Nayarit’s stock didn’t move on the news, closing at 50¢; the company has a 52-week trading range of 40¢ to 73¢ and 90 million shares outstanding.
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