MAG Silver gains toehold in Cadillac-Larder Lake Break
Canadian explorer and developer MAG Silver on Friday announced the acquisition of Gatling Exploration in an all-share transaction valued at about C$18-million.
Gatling owns the Larder project, which hosts three gold deposits along the Cadillac-Larder Lake Break, 35 km east of Kirkland Lake. The 3 370 ha project area lies 7 km west of the Kerr Addison mine.
“Gatling’s Larder property gives us a substantial toehold along this regionally productive gold-bearing structure, where we believe more gold should be findable,” said MAG Silver president and CEO George Paspalas.
MAG will acquire Gatling in an all-share transaction, with each shareholder entitled to receive 0.01702627 of a common share of MAG for each share of Gatling held.
The consideration values Gatling at about C$0.40 a share, which is a 47% premium to the five-day volume weighted average price of each company at the close of trading on March 10.
Gatling’s stock surged 37% on Friday to close at C$0.37 a share.
Upon completion of the transaction, Gatling shareholders will hold about 0.79% of MAG shares on an outstanding basis.
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