Highgold Mining Inc (TSE:HIGH) has released an update.
Contango ORE, Inc. has reached a definitive agreement to acquire all shares of HighGold Mining Inc., thus expanding its foothold as an emergent North American gold producer with high-grade deposits in Alaska. The transaction values HighGold at about US$37 million, offering HighGold shareholders a 59% premium based on recent stock performance, and will result in HighGold shareholders owning 15% of the merged entity. This strategic move enhances Contango’s resource base significantly, promising to triple current resources and offering potential for increased annual gold production through further development of HighGold’s Johnson Tract Project.
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