Falco Resources Will Purchase Golden Queen Mining

Falco Resources Ltd. has entered into an agreement with Golden Queen Mining Consolidated Ltd. to acquire all of the issued and outstanding common shares of Golden Queen. The acquisition is expected to be completed by way of a statutory plan of arrangement under the Business Corporations Act. Through this non-cash transaction, Falco is offering a 15% premium on the forecast net cash balance of Golden Queen at the closing of this transaction, in consideration for the issuance of 15,968,075 common shares of Falco to holders of Golden Queen shares.

President and CEO of Falco Luc Lessard said, “We are pleased to reach this agreement with Golden Queen as it will provide Falco with a stronger balance sheet and a broader shareholder base, which will benefit from the development of the Horne 5 Project. In addition, we believe that Falco has acquired cash at a reasonable price, in the context of the challenging equity market. With this transaction, Falco will secure approximately $4.2 million in cash resources, which can be invested on the Horne 5 Project.”

CEO and CFO of Golden Queen Guy Le Bel said, “The board of directors mandated that we focus the search for an advanced gold project within North America while balancing potential risks and return on behalf of the Golden Queen shareholders. The Horne 5 Project is a world-class 6 million-plus ounces (oz) gold equivalent in proven and probable reserves and is located in a mine permitting-friendly jurisdiction. “We are confident in this project’s execution ability with the Falco Resources team. Further, our shareholders receive an immediate premium to the cash and value of the company in providing this project, creating a positive transaction for both sides.”

Golden Queen Shareholders will be entitled to receive 1.18 Falco Shares in exchange for each Golden Queen Share held. The arrangement will require the approval of Golden Queen shareholders at a special meeting expected to take place at the end of March.

As featured in Womp 2020 Vol 03 - www.womp-int.com