MegumaGold Corp (CSE:NSAU) (OTCMKTS:NSAUF) (FRA:2CM2) is set to purchase all of Canadian GoldCamps Corp (CSE:CAMP) (OTCMKTS:SMATF) (FRA:A681) assets in a deal, which replaces the previously announced share exchange merger agreement announced last November, which has now been terminated.
The pair, on January 4, have now struck an asset purchase agreement, which sees gold explorer Canadian GoldCamps sell to MegumaGold all of its Canadian assets and associated working capital in exchange for MegumaGold shares.
READ: MegumaGold poised to merge with Canadian GoldCamps to create premier gold explorer in Atlantic Canada
The latter's shares will be distributed directly to Canadian GoldCamps' shareholders, subject to a shareholder vote and other regulatory approvals.
Canadian GoldCamps will hold an annual general and special meeting of shareholders on January 29 this year, to seek approval for the deal. It will need via special resolution approval by 66.67% of Canadian GoldCamps' shareholders.
For each one share of Canadian GoldCamps held as at November 16 last year, shareholders would receive 1.1 shares of MegumaGold.
In addition, all outstanding options and warrants of Canadian Goldcamps that have not been exercised prior to closing will be exchanged for options and warrants of MegumaGold, the company said in a statement.
If shareholders grant approval, Canadian Goldcamps' intends to distribute the consideration received from MegumaGold directly to its shareholders and then to delist from the Canadian Securities Exchange.
Junior explorer MegumaGold is focused on developing the Meguma formation of Nova Scotia, Canada and has established a district-scale tenure position of 110,791 hectares within the gold district.
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