VANCOUVER - GT Gold Corp.(TSX-V:GTT; OTCQX:GTGDF) and Newmont Corporation (NYSE: NEM, TSX: NGT) reported they have entered into a binding agreement, pursuant to which Newmont has agreed to acquire all of the outstanding shares of GT Gold that Newmont does not already own for C$3.25 per share in cash. The total equity value pursuant to the transaction is approximately C$456 million on a fully diluted basis. The transaction price represents a premium of 38% to the 20-day volume-weighted average price of GT Gold's shares on the TSX-V as at March 9, 2021.
The company's flagship asset is the wholly-owned, 47,500 hectare Tatogga property, located in the Traditional Territory of the Tahltan Nation. This is part of the highly prospective Golden Triangle region of British Columbia, Canada.
Benefits to GT Gold Shareholders
Immediate and attractive premium for GT Gold shareholders.All-cash transaction that is not subject to a financing condition.Removes future dilution, commodity, development, and execution risk.Strong GT Gold shareholder support with voting support agreements entered with the directors and senior officers of GT Gold, Ross Beaty, The K2 Principal Fund LP , and Muddy Waters LLC , representing, in aggregate, approximately 43% of the outstanding shares of GT Gold.Ashwath Mehra, Executive Chair of GT Gold stated: "We are very pleased to be announcing this Transaction with Newmont today, representing the execution of our plan and the culmination of significant value creation for GT Gold shareholders since the formation of the Company. The Transaction is a testament to the years of diligent, professional work by the entire GT Gold team. My fellow directors and I would like to express our thanks and appreciation to all who have been involved in successfully advancing the Tatogga project to this stage from discovery to sale in just over four years. The Transaction is not only a great outcome for our shareholders, but also one that we believe will benefit all our rightsholders and stakeholders in the coming years."
GT Gold is engaged in advancing its wholly-owned, 47,500 hectare Tatogga property, located in the renowned "Golden Triangle" near Iskut, British Columbia. To date, GT Gold has made two significant discoveries on the Tatogga property, "Saddle South", a precious metal-rich vein system and "Saddle North", a gold-rich copper porphyry system.
Newmont is the world's leading gold company and a producer of copper, silver, zinc and lead. The company's world-class portfolio of assets, prospects and talent is anchored in favorable mining jurisdictions in North America, South America, Australia and Africa. Newmont is the only gold producer listed in the S&P 500 Index and is widely recognized for its principled environmental, social and governance practices. The company is an industry leader in value creation, supported by robust safety standards, superior execution and technical expertise. Newmont was founded in 1921 and has been publicly traded since 1925.
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