Gatling Exploration, a Vancouver-based gold junior company operating in the Kirkland Lake area, is being acquired by MAG Silver in all-share acquisition.
Gatling is working a gold property known as the Larder Project, 35 kilometres east of Kirkland Lake.
According to the proposed deal, MAG will acquire all of the issued and outstanding common shares of Gatling. Shareholders of Gatling will receive 0.0170627 of one common share of MAG for each Gatling share.
MAG is also extending a $3-million loan to Gatling to help with operating expenses and accounts payable The board of directors of Gatling approved the agreement and recommend that its security holders vote in favour of the acquisition.
The transaction is expected to close in late-May 2022.
Gatling's Larder Project hosts three high-grade gold deposits along the Cadillac-Larder Lake Break. The 3,370-hectare property contains a gold resource of 388,000 ounces in the indicated category and 933,000 ounces of inferred ounces. The project is located 7 kilometres west of the Kerr Addison Mine, once a producer of 11 million ounces of gold.
Vancouver's MAG Silver is an exploration and mine development company focused on silver and gold-dominant projects in Mexico and Utah. This is the company's first foray into Canada.
In a March 11 news release, Gatling said attracting MAG to the scene is a validation of the quality technical their team has performed at the Larder project and speaks to the site's growth potential.
"We would like to thank all key stakeholders, including the Matachewan and Wahgoshig First Nations, for their ongoing support and look forward to introducing these parties to their new partner shortly," the company said in the release. "We are targeting a close by late-May and plan to transition the Larder project into MAG’s capable hands shortly thereafter.”
“Today’s announcement marks the culmination of several months’ effort to evaluate financing alternatives at Gatling," said Gatling president-CEO Jason Billan in a statement, "which has led to an all-share acquisition by leading mid-tier miner, MAG Silver, at a highly robust premium.
