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  • Austral Gold (AGD) has finalised the terms for its proposed takeover of Canadian venture miner Revelo Resources
  • If approved, Austral will acquire all outstanding shares in Revelo in exchange for 0.9184 ordinary shares of Austral a share and just over C$0.03 (approximately A$0.031) in cash
  • The joint share-and-cash sale values Revelo TSX-Venture shares at around C$0.306 cents (approximately A$0.32), just over the company’s recent trading average
  • To be approved the deal will need to reach two-thirds majority approval from Revelo shareholders at the company’s upcoming meeting
  • Austral Gold closed in the grey for 23 cents per share

Austral Gold (AGD) has finalised the terms for its proposed takeover of Canadian venture miner Revelo Resources.

If approved, Austral will acquire all outstanding shares in Revelo in exchange for 0.9184 ordinary shares of Austral a share and just over C$0.03 in cash (approximately A$0.031). The joint share-and-cash sale values Revelo TSX-Venture shares at around C$0.306 cents (approximately A$0.32), just over the company’s recent trading average.

Austral expects to put up around C$1.17 million through the proposed deal, which will need to reach two-thirds majority approval from Revelo shareholders at the company’s upcoming meeting.

Thus far, just over half of Revelo’s shareholders have already thrown their weight behind the deal. If the deal is approved, Austral doesn’t expect to make any board changes.  

Through the aquisition, Austral hopes to gain ownership of Revelo’s three Chile-based projects, which would add to its nearby pre-existing Guanaco and Amancaya mining complex. The deal would expand Austral’s holding in the area by more than 30,000 hectares.

Austral’s Chief Executive Officer, Stabro Kasaneva, said the company was very pleased to have entered into the definitive arrangement agreement with Revelo.

“The addition of Revelo’s assets to our portfolio provides us with a leading role in the Paleocene-Eocene Belt in Chile. In addition, we believe this prolific mineralized belt is underexplored for precious metals,” he added.

Meanwhile, Revelo Chairman Michael Winn said the deal represents the next step in what is “an incredibly attractive deal” for Revelo’s shareholders.

Austral Gold closed in the grey for 23 cents per share.

AGD by the numbers
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