NSGold shares up 56% on St. Barbara takeover news

NSGold shares up 56% on St. Barbara takeover news
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TORONTO – NSGold Corp. [NSX-TSXV] shares jumped 56% Thursday on news that the company has agreed to be acquired by a unit of Atlantic Mining NS Inc. in a deal worth 40 cents a share in cash. Atlantic is a subsidiary of Australia Stock Exchange-listed St. Barbara Ltd. [ASX-SBM].

NSGold’s flagship asset is the Mooseland Gold Property located 70 kilometres northeast of Halifax and only 13 kilometres from the Moose River Gold mine. Moose River was held by Atlantic Gold Corp., a company that was acquired by St. Barbara in 2019. Mooseland is the site of the first recorded gold discovery in Nova Scotia in 1858,

Under the terms of the transaction each issued and outstanding share of NSGold will be exchanged for one redeemable preferred share of Amalco, which will be immediately redeemed for 40 cents cash per share. The total consideration is $7.9 million.

NSGold has called a special meeting of shareholders, to be held at the company’s head office in Bedford, Nova Scotia, on February 15, 2022 to vote on the amalgamation. Subject to shareholders approving the amalgamation by a vote of at least two-thirds of the votes cast by shareholders present or represented by proxy and entitled to vote, the amalgamation is expected to take effect shortly after the meeting.

Upon completion of the transaction, NSGold shares will be delisted from the TSX Venture Exchange.

Van Hoof Industrial Holdings Ltd., a company controlled by Johannes H.C. van Hoof, Chairman, President and CEO of NSGold, which owns 8.5 million common shares of the junior, and three other directors of NSGold holding 367,101 common shares, representing an aggregate of 8.9 million shares or 50.4% of the outstanding shares of NSGold, have agreed to vote their shares in favour of the transaction.

NSGold shares advanced on the news, rising 56% or 14 cents to 39 cents. The shares are currently trading in a 52-week range of 43 cents and 21 cents.

St. Barbara is an Australian company with gold mining operations in Australia, Canada and Papua New Guinea.

Atlantic Gold began production at the Touquoy site at Moose River Gold Mines in 2018. Further to the currently operational open pit, there is a planned expansion of three additional projects nearby at Beaver Dam, Fifteen Mile Stream and Cochrane Hill.

St. Barbara is exploring in the Moose River Corridor and elsewhere in Nova Scotia. As of June 30, 2021, St. Barbara’s Atlantic Canada operations were estimated to contain 1.7 million ounces of gold in reserves at a grade of 1.0 g/t.

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