Mandalay Resources Corporation Completes Acquisition of Elgin Mining Inc.
|Areas||Banking and Finance Law, Corporate Finance and Securities, Environmental Law, Litigation, Mining and Natural Resources, Tax|
Goodmans represented Mandalay Resources Corporation (Mandalay), a Canadian-based natural resource company with producing assets in Australia and producing and development projects in Chile in its acquisition of all the issued and outstanding common shares of Elgin Mining Inc. (Elgin), a Canadian-based company focused on production at the Björkdal gold mine in Sweden, for a total transaction value of approximately $70 million. The acquisition was completed pursuant to a court-approved plan of arrangement under the Business Corporations Act (Ontario).
Pursuant to the arrangement, Mandalay acquired each outstanding Elgin common share in exchange for $0.37 in cash or 0.4111 of a Mandalay common share, subject to pro-ration if the aggregate cash consideration would exceed $27 million or the aggregate share consideration would exceed 50 million Mandalay common shares.