Algold Resources Ltd. (TSXV:ALG) and First Uranium Corp. (TSX:FIU) have entered into a definitive agreement under which Algold will acquire all of the issued and outstanding shares of First Uranium.
As quoted in the press release:
Pursuant to the terms of the Agreement, FIU shareholders will receive 0.0729849 of an Algold share for each FIU Unit held, implying an offer of approximately C$0.011 per unit based on the closing price of Algold’s shares on the TSX Venture Exchange on Friday, October 25, 2013. In addition, for every full Algold share issued to an FIU shareholder, such holder will receive 1/2 of one Algold common share purchase warrant (the “Algold Warrants”). Each full Algold Warrant entitles the holder thereof to purchase one Algold share at a price of $0.20 per Algold share at any time for a period of eighteen months following the issuance of the Algold Warrants.
Pro forma the Transaction, FIU shareholders will own approximately 52% of Algold (based on fully diluted in the-money shares outstanding). Approximately 33,465,671 common shares of Algold are expected to be outstanding upon closing, subject to any adjustments pursuant to the terms of the Agreement.