Gediminas Jasionis
0 Vote 0

Auryx Gold Corp. (TSE:AYX) (PINK:AYXRF) Is Waiting To Merge With B2Gold Corp. (CVE:BTO) (OTC:BGLPF)

by Gediminas Jasionis Oct 12, 2011
ayx_chart.pngAuryx Gold Corp. (TSE:AYX) (PINK:AYXRF) share price is stuck around 74 cents per share as traders await the recently announced merger plans to commence.

The stock is trading with a nearly 60% premium for the second day now and will continue to provide space only for minor fluctuations. The situation was created after the company signed a binding agreement with B2Gold Corp. (CVE:BTO) (OTC:BGLPF) for a business combination in the foreseeable future.

Both entities agreed to an exchange rate of 0.23 shares of BTO plus $0.001 for each common share of Auryx. This represented a 78% premium to the 20 day average market price of AYX. The transaction is worth around $157 million in total.

auryx_logo.jpgThe combined entity will hold 92% interest in the Otjikoto gold project and fully own two more exploration stage projects in Namibia. The Otjikoto project is expected to generate over 100 thousand ounces of gold per year, based on the most recent evaluation study. The management of B2Gold is already looking into possibilities to fast-track the development of this project by making use of Auryx's local partners.

The merger still has to be approved by the shareholders of Auryx.

Comments (0)

Type the characters that you see in the box (5 characters).

This is a captcha-picture.