SAN FRANCISCO, July 16, 2019 (GLOBE NEWSWIRE) -- Terraco Gold Corp. (TEN:TSX.V; TCEGF:OTCPK), which holds a royalty on the Spring Valley gold project in Nevada, is being acquired by Sailfish Royalty. The combined company will hold a geographically diverse set of royalties, including projects in Nevada, Mexico, Brazil and Nicaragua.
Company mentioned: Terraco Gold Corp.
According to the terms of the deal, Terraco shareholders will receive 0.12 of a common share of Sailfish for each Terraco share. The arrangement represents a premium of approximately 53% over the trailing 20-day volume weighted average price of the Terraco shares as at June 19, the day before the announcement. The deal, which has the unanimous recommendation of the boards of both companies, is expected to close in mid-August.
"To join together with Sailfish is a great opportunity for us," Terraco CEO Todd Hilditch told Streetwise Reports. "We have a royalty portfolio on the Spring Valley gold project, that has size, scale and will be long-life depending on the production profile and the operator. Having a near-term production story made sense to us. With a combined Sailfish and Terraco, we see….one plus one equaling three with a current cash flowing royalty, a stream/royalty in the shorter term (within 12 months), and then longer-term growth with our royalties as well as acquisition opportunities."
In addition, funds managed by Wexford Capital LP, collectively the largest shareholder of Sailfish with a 76% ownership stake, have completed a private placement into Terraco at C$0.13 per share, for gross proceeds of C$4.7 million. This arrangement is not contingent upon the closing of the Sailfish acquisition.
Continue reading this article: Merger of Two Royalty Companies Provides Growth Platform to Become a Mid-Tier Force
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