R/€ = 16.18 Change: 0.13
R/$ = 14.23 Change: 0.12
Au 1410.75 $/oz Change: -22.56
Pt 816.86 $/oz Change: 3.85
 
 
R/€ = 16.18 Change: 0.13
R/$ = 14.23 Change: 0.12
Au 1410.75 $/oz Change: -22.56
Pt 816.86 $/oz Change: 3.85
 
 
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Americas Silver, Pershing Gold shareholders approve business combination

10th January 2019 BY: Tasneem Bulbulia
Creamer Media Reporter

Americas Silver and Pershing Gold on Wednesday announced that their respective shareholders had given the requisite approvals for the merger of the two companies.

Americas Silver shareholders approved a special resolution to amend the company’s articles of incorporation to create a new class of nonvoting preferred shares and an ordinary resolution to authorise the transaction and the issuance of shares thereunder.

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Pershing’s shareholders voted to approve the transaction, as well as other related resolutions.

“Today marks another important step forward toward our goal of creating a profitable, low‐cost precious metal company,” Americas Silver president and CEO Darren Blasutti commented in a statement on Wednesday. 

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“Upon closing of the transaction, we will be focused on advancing the next phase of the combined company’s growth by financing and bringing the low-capital, high-return Relief Canyon mine into production.”

The openpit mine, in Nevada, is expected to produce about 91 000 oz/y of gold. A feasibility study has estimated a pre-tax net present value of $118-million and a pre-tax internal rate of return of 71%.

Completion of the transaction remains subject to the satisfaction or waiver of certain customary conditions.

In anticipation of the closing of the transaction, Americas Silver has been in discussions with several parties interested in providing financing for the development of the Relief Canyon mine.

The company has compiled a short list of potential parties and intends to announce its plans for financing the mine by the end of the first quarter of this year, assuming the successful close of the transaction. 

EDITED BY: Chanel de Bruyn Creamer Media Senior Deputy Editor Online
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