IAMGOLD Corporation (TSX/NYSE: IMG) has completed its previously announced acquisition of all of the issued and outstanding common shares of Merrex Gold Inc. (TSX-V: MXI) not already owned by IAMGOLD and all of the outstanding common share purchase warrants of Merrex.
As a result of the transaction, Merrex is now a wholly-owned subsidiary of IAMGOLD.
IAMGOLD owned approximately 45.8 million or 23% of Merrex’s issued and outstanding common shares.
IAMGOLD issued to Merrex other shareholders approximately 6.92 million shares valued at $35.9 million based on IAMGOLD closing price of $5.19 on February 27, 2017.
Haywood Securities Inc. acted as financial advisor to Merrex. McCullough O’Connor Irwin LLP and Fasken Martineau DuMoulin LLP acted as legal counsels to Merrex and IAMGOLD respectively.
“With the acquisition of Merrex, we now own 100% of the Siribaya-Diakha project in Mali and its gold resource, which is estimated to be in excess of one million ounces as reported in our annual reserve and resource news release of February 22, 2017,” said President and CEO of IAMGOLD Steve Letwin. “This transaction consummates eight years of excellent work and partnership with the Merrex team that led to the discovery of the Diakha deposit. This project, along with the ongoing exploration and evaluation of our nearby Boto Gold project in Senegal, gives us a significant footprint from which to advance our 2017 goal to expand our current resources in this prolific region of West Africa.”
photo credit: Merrex Gold