REBgold Corporation Combines with Aquila Resources Inc. and Aquila Completes Back Forty Acquisition
|Areas||Corporate Finance and Securities, Litigation, Mining and Natural Resources, Tax|
Goodmans represented REBGold Corporation in connection with the completion by Aquila Resources Inc. and REBgold Corporation of:
(i) a statutory plan of arrangement in which Aquila acquired 100% of the outstanding shares of REBgold in exchange for Aquila shares on a one-for-one basis;
(ii) the acquisition of Hudbay Minerals’ 51% interest in the Back Forty Project in Michigan's Upper Peninsula (in respect of which consideration included common shares of Aquila, milestone payments tied to the development of the Back Forty Project and a net smelter return royalty on a portion of the Back Forty property; and
(iii) the non-brokered private placement of REBgold shares for gross proceeds of approximately $4.85 million.
Pursuant to the REBgold financing, Baker Steel Capital Managers LLP, on behalf of investment funds managed or controlled by it, invested $4.5 million of the gross proceeds. Proceeds from the REBgold financing will be used for general working capital and to fund the next phase of development activity at Back Forty.