Toronto's Victoria Gold Corp. (TSX-V:VIT) plans to acquire Vancouver's Gateway Gold Corp. (TSX:GTQ) in an all-share deal worth approximately $5.3 million.
Under the terms of the deal, Gateway shareholders will receive half a Victoria share for each Gateway share. In connection with the deal, Victoria has advanced a $500,000 loan to Gateway.
The deal, which is subject to customary regulatory and shareholder approvals, is expected to close sometime in mid-December.
Upon completion of the deal, Victoria's president and CEO Chad Williams will be president and CEO of the combined company. Michael McInnis, who is Gateway's president and CEO, will be a director of the company.
Gateway Gold's share price range during the past week: between $0.13 and $0.18; 52-week high: $0.84; 52-week low: $0.08.