Reyna Gold Announces Signing of Definitive Agreement to Combine with Reyna Silver and Become a Premier Exploration Company
Reyna Gold Corp. (TSXV:REYG)(OTCQB:REYFG) has entered into an arrangement agreement with Reyna Silver Corp. to combine their operations. Under the terms, Reyna Silver will acquire all issued and outstanding shares of Reyna Gold, with REYG shareholders receiving 1 RSLV share for every 3 REYG shares held. This represents a 48% premium based on the 20-day VWAP. The transaction aims to create a larger-scale entity with increased access to capital and an expanded portfolio of silver-lead-zinc-copper exploration assets in the US and Mexico. Upon completion, REYG shareholders will hold approximately 10% of the combined entity. The deal is expected to close in September 2024, subject to regulatory approvals and shareholder vote.
Reyna Gold Corp. (TSXV:REYG)(OTCQB:REYFG) ha stipulato un contratto di fusione con Reyna Silver Corp. per unire le loro operazioni. Secondo i termini, Reyna Silver acquisirà tutte le azioni emesse e in circolazione di Reyna Gold, con i azionisti di REYG che riceveranno 1 azione RSLV per ogni 3 azioni REYG possedute. Questo rappresenta un premio del 48% basato sul VWAP a 20 giorni. L'operazione mira a creare un ente di maggiore dimensione con un accesso aumentato al capitale e un portafoglio ampliato di beni di esplorazione di argento-piombo-zinco-rame negli Stati Uniti e in Messico. Al termine della fusione, gli azionisti di REYG deterranno circa il 10% dell'entità combinata. Si prevede che l'affare si chiuda a settembre 2024, soggetto a approvazioni normative e voto degli azionisti.
Reyna Gold Corp. (TSXV:REYG)(OTCQB:REYFG) ha firmado un acuerdo de fusión con Reyna Silver Corp. para combinar sus operaciones. Según los términos, Reyna Silver adquirirá todas las acciones emitidas y en circulación de Reyna Gold, con los accionistas de REYG recibiendo 1 acción de RSLV por cada 3 acciones de REYG que posean. Esto representa una prima del 48% basado en el VWAP de 20 días. La transacción tiene como objetivo crear una entidad de mayor tamaño con acceso mejorado al capital y una cartera ampliada de activos de exploración de plata-plomo-zinc-cobre en los Estados Unidos y México. Al finalizar, los accionistas de REYG poseerán aproximadamente el 10% de la entidad combinada. Se espera que el acuerdo se cierre en septiembre de 2024, sujeto a aprobaciones regulatorias y a la votación de los accionistas.
Reyna Gold Corp. (TSXV:REYG)(OTCQB:REYFG)는 Reyna Silver Corp.와 합병 계약을 체결하여 운영을 통합하기로 했습니다. 조건에 따라 Reyna Silver는 Reyna Gold의 발행된 모든 주식을 인수하며, REYG 주주들은 보유하고 있는 3 REYG 주식당 1 RSLV 주식을 받게 됩니다. 이는 20일 VWAP을 기준으로 한 48% 프리미엄을 나타냅니다. 이번 거래의 목표는 미국과 멕시코에서 은-납-아연-구리 탐사 자산의 포트폴리오를 확장하여 규모가 더 큰 회사를 만드는 것입니다. 거래가 완료되면 REYG 주주는 약 결합된 회사의 10%를 보유하게 됩니다. 거래는 2024년 9월에 마무리될 것으로 예상되며, 규제 승인 및 주주 투표에 따릅니다.
Reyna Gold Corp. (TSXV:REYG)(OTCQB:REYFG) a conclu un accord de fusion avec Reyna Silver Corp. pour combiner leurs opérations. Selon les termes, Reyna Silver acquerra toutes les actions émises et en circulation de Reyna Gold, les actionnaires de REYG recevant 1 action RSLV pour chaque 3 actions REYG détenues. Cela représente une prime de 48% basée sur la VWAP sur 20 jours. La transaction vise à créer une entité de plus grande taille avec un accès accru à des capitaux et un portefeuille élargi d'actifs d'exploration en argent-plomb-zinc-cuivre aux États-Unis et au Mexique. À l'issue de la fusion, les actionnaires de REYG détiendront environ 10% de l'entité combinée. L'accord devrait être finalisé en septembre 2024, sous réserve des approbations réglementaires et du vote des actionnaires.
Reyna Gold Corp. (TSXV:REYG)(OTCQB:REYFG) hat eine Fusionsvereinbarung mit Reyna Silver Corp. geschlossen, um ihre Betriebe zu kombinieren. Laut den Bedingungen wird Reyna Silver alle ausgegebenen und ausstehenden Aktien von Reyna Gold erwerben, wobei REYG-Aktionäre für jede 3 REYG-Aktien 1 RSLV-Aktie erhalten. Dies stellt eine 48% Prämie basierend auf dem 20-Tage-VWAP dar. Die Transaktion zielt darauf ab, ein größeres Unternehmen zu schaffen, das einen besseren Zugang zu Kapital und ein erweitertes Portfolio an Silber-Blei-Zink-Kupfer-Erkundungsanlagen in den USA und Mexiko hat. Nach Abschluss werden die REYG-Aktionäre etwa 10% des kombinierten Unternehmens halten. Der Deal wird voraussichtlich im September 2024 abgeschlossen, vorbehaltlich der Genehmigungen durch die Aufsichtsbehörden und der Abstimmung der Aktionäre.
- 48% premium offered to REYG shareholders based on 20-day VWAP
- Creation of a larger entity with increased access to capital
- Consolidation of joint option on Gryphon Summit Project
- Elimination of duplicate administrative and regulatory costs
- Expanded portfolio of exploration assets in the US and Mexico
- REYG shareholders will only hold 10% of the combined entity
- Dilution of REYG shareholders' ownership
- Transaction subject to regulatory approvals and shareholder vote
VANCOUVER, BC AND HONG KONG, CHINA / ACCESSWIRE / August 7, 2024 / Reyna Gold Corp. (TSXV:REYG)(OTCQB:REYFG) ("Reyna Gold") is pleased to announce that it has entered into an arrangement agreement dated August 7, 2024, 2024 (the "Agreement") with Reyna Silver Corp. ("Reyna Silver"), pursuant to which Reyna Silver has agreed to acquire all of the issued and outstanding common shares of Reyna Gold (the "REYG Shares") by way of a statutory plan of arrangement under the Business Corporations Act (British Columbia) (the "Transaction").
Strategic Highlights and Benefits of the Transaction
Represents an attractive opportunity for REYG Shareholders to own shares in a larger, more liquid publicly traded entity at an exchange ratio that implies a
48% premium to Reyna Gold's share price (based on each company's respective 20-day VWAP).Creates a larger-scale entity with increased access to capital to enable the financing of continuing exploration of Reyna Silver and Reyna Gold's combined exploration portfolio.
Consolidates Reyna Silver and Reyna Gold's current joint option of the Gryphon Summit Project (defined below).
Eliminates duplicate back end administrative and regulatory costs by eliminating one public issuer.
The combined entity will be well capitalized to increase the value of its improved project portfolio, supported by its strong executive management team and Board of Directors.
The Transaction is an arm's length transaction and provides REYG Shareholders with a premium of approximately
Under the terms of the Agreement, each holder of REYG Shares (a "REYG Shareholder" and, collectively, the "REYG Shareholders") will receive one (1) common share of Reyna Silver (a "RSLV Share") for every three (3) REYG Shares held (the "Consideration"). The value of the Consideration represents an approximate
As part of the Transaction, all outstanding options of Reyna Gold will vest immediately and be exchanged for the number of options to purchase RSLV Shares based on the exchange ratio outlined in the Agreement.
In connection with the Transaction, Reyna Gold will assign and Reyna Silver will assume all of Reyna Gold's right, title, interest and obligations under the Property Option Agreement dated August 29, 2023 among Golden Gryphon USA Inc. (the "Gryphon Option Agreement"), Reyna Silver and Reyna Gold with respect to the Gryphon Summit Project.
In addition, it is expected that immediately prior to the Transaction, up to
Additional Details on the Transaction
Completion of the Transaction will, among other things, require the approval of: (i) at least two-thirds of the votes cast by the REYG Shareholders; and (ii) if required, a simple majority of the votes cast by REYG Shareholders, excluding for this purpose the votes of "related parties" and "interested parties" and other votes required to be excluded under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions, with all votes to occur at a special meeting of REYG Shareholders expected to take place in September 2024 (the "Reyna Gold Meeting"). No shareholder vote is required by RSLV Shareholders. The Agreement includes covenants typical for transactions of this nature, including non-solicitation covenants.
The Transaction is expected to close in September 2024, subject to the satisfaction (or waiver) of a number of conditions precedent, including, but not limited to receipt of all regulatory approvals, including the approval of the Supreme Court of British Columbia and the TSXV, assignment of the Gryphon Option Agreement and completion of the Debt Conversions.
The Transaction has the full endorsement of both the boards of Reyna Gold and Reyna Silver upon the recommendation of a special committee of independent directors of each respective board with the mandate to evaluate the proposed transaction. Certain directors sit on the boards of both Reyna Silver and Reyna Gold and accordingly are not members of either special committee. The special committee of Reyna Gold has received advice from its advisors and has reviewed a fairness opinion from Evans & Evans, Inc., and has unanimously determined that the Transaction is in the best interests of Reyna Gold and will recommend that REYG Shareholders vote in favour of the Transaction.
Full details of the Transaction will be included in the management information circular (the "Circular") of Reyna Gold describing the matters to be considered at the Reyna Gold Meeting, which is expected to be mailed to the REYG Shareholders in August 2024. A copy of the Agreement is presently available, and a copy of the Circular will be made available following its mailing, on the SEDAR+ profile of Reyna Gold at www.sedarplus.ca.
Advisors
Evans & Evans, Inc. has provided a fairness opinion to Reyna Gold in connection with the Transaction. Edwards, Kenny & Bray LLP is acting as legal counsel to Reyna Silver. Segev LLP is acting as legal counsel to the Reyna Gold special committee and Founders LLP is acting as legal counsel to the Reyna Silver special committee.
For Further Information, Please Contact:
Reyna Gold Corp.
Michael Wood
Chief Executive Officer
T: +852 2501 9328
E: info@reynagold.com
www.reynagold.com
About Reyna Silver Corp.
Reyna Silver is a growth-oriented junior exploration and development company. Reyna Silver focuses on exploring for high-grade, district-scale silver deposits in Mexico and the United States. In Nevada USA, Reyna Silver has entered into an option to acquire
About Reyna Gold Corp.
Reyna Gold is a gold exploration company focused on district-scale exploration. Reyna Gold has a portfolio of assets on the Mojave-Sonora Megashear and the Sierra Madre Gold in Mexico, and a joint option with Reyna Silver to acquire the 10,300-hectare combined Carlin-style and CRD Gryphon Summit Project in Eureka Co., Nevada, USA. Reyna Gold has an experienced management team with a proven track record of wealth creation through project discovery, advancement, and monetization.
Forward Looking Information
Certain statements contained in this press release constitute forward-looking information under applicable Canadian, United States and other applicable securities laws, rules and regulations, including, without limitation, statements with respect to: the completion of the Transaction, the assignment of the Gryphon Option Agreement, the conditions to the completion of the Transaction that must be fulfilled, including approval of the Transaction by the REYG Shareholders, the timing receipt and anticipated effects of court, regulatory and other consents and approvals, and the anticipated benefits and advantages of the Transaction. These statements relate to future events or future performance. The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward looking information and are based on Reyna Gold's current beliefs or assumptions as to the outcome and timing of such future events. There can be no assurance that such statements will prove to be accurate, as Reyna Silver and Reyna Gold's actual results and future events could differ materially from those anticipated in these forward-looking statements. Factors that could cause actual results and future events to differ materially from those anticipated in these forward-looking statements include, among others, risks related to failure to receive approval by REYG Shareholders, the required court, regulatory and other consents and approvals to effect the Transaction, the possibility that the Agreement could be terminated in certain circumstances, and the other risks factors set forth in the "Risk Factors" section in Reyna Gold's latest management discussion and analysis dated May 30, 2024. Various assumptions or factors are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking information. Those assumptions and factors are based on information currently available to Reyna Gold. The forward-looking information contained in this news release is made as of the date hereof and Reyna Gold undertakes no obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.
Information About Each Company
Information in this news release about Reyna Silver has been provided by, and is the responsibility of Reyna Silver. For further information about Reyna Silver, please refer to Reyna Silver's filings with Canadian securities regulatory authorities under its issuer profile on SEDAR+. Information in this news release about Reyna Gold has been provided by, and is the responsibility of, Reyna Gold. For further information about Reyna Gold, please refer to Reyna Gold's filings with Canadian securities regulatory authorities under its issuer profile on SEDAR+.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Reyna Gold Corp
View the original press release on accesswire.com
FAQ
What is the exchange ratio for Reyna Gold (REYFG) shares in the merger with Reyna Silver?
What premium does the Reyna Gold (REYFG) merger offer to shareholders?
When is the expected closing date for the Reyna Gold (REYFG) merger?
What percentage of the combined company will Reyna Gold (REYFG) shareholders own after the merger?
