Toronto's Victoria Gold Corp. (TSX-V:VIT) is acquiring Vancouver's StrataGold Corp. (TSX:SGV) in a friendly merger all-share deal worth approximately $9.2 million.
StrataGold shareholders are being offered 0.1249 of a Victoria Gold share for each StrataGold share. The share value represents a 38.1% premium to the 60-day volume-weighted average trading price of StrataGold.
The merger will help advance StrataGold's Dublin Gulch project in the Yukon using Victoria's expertise in northern project development. Victoria will gain two additional advanced projects to its development pipeline.
The deal is expected to close March 12, subject to shareholder, regulatory and other customary approvals.
As part of the deal, Victoria will provide StrataGold with an initial $350,000 bridge loan and a $400,000 line of credit.
StrataGold's share price range during the past week: between $0.04 and $0.05; 52-week high: $0.33; 52-week low: $0.01.