Shareholders of Vancouver’s AuEx Ventures Inc. (TSX:XAU) have overwhelmingly approved plans to merge with Vancouver’s Fronteer Gold Inc. (TSX:FRG).
Virtually all the shareholders at a special meeting approved the merger, which will see AuEx shareholders receive 0.65 of a Fronteer Gold share, $0.66 in cash and half of a share in Renaissance Gold Inc., a new exploration company.
The deal, announced in August, valued AuEx for $280.8 million, representing a 50.9% premium on the volume-weighted average price of AuEx and Fronteer for the last 20 trading days before the deal was announced.
Fronteer’s acquisition combines ownership of the Long Canyon gold project in Nevada.
Following closing of the deal, Renaissance Gold will hold all of AuEx’s exploration assets outside of the Pequop district and have approximately $5 million in cash. It will also hold 18.6% of Fronteer shares on a fully diluted basis and 90.1% of Renaissance Gold shares.
Fronteer’s share price range during the past week: between $7.50 and $8.13; 52-week high: $8.41; 52-week low: $3.77.