Victoria Gold extends merger offer expiry date for ATAC Resources

Victoria is pushing ahead offer expiry date to 5 p.m. pacific standard time on Friday, February 17

Joseph Morton

Published

February 13, 2023

Victoria Gold Corp. (TSX: VGCX) provided notice to ATAC Resources (TSXV: ATC) that its proposed merger offer expires at the close of business on February 17, 2023.

The company issued a non-binding proposal to acquire ATAC on January 12, 2023, at an offer of $0.12 per ATAC share, payable in Victoria shares. ATAC declined the offer five days later, and discussions between the two companies advisors have ATAC formally confirming its rejection of Victoria’s proposal on February 7, 2023.

“With our demonstrated track record permitting, financing, constructing and operating the Eagle Gold Mine in Yukon, we believe that we can add value to ATAC’s portfolio which would benefit shareholders of both companies,” said president and CEO of Victoria, John McConnell.

Victoria Gold believes the offer to be fair and generous for ATAC shareholders. Additionally, the offer implies a premium 85 per cent to ATAC’s closing share price on February 10, 2023.

Also, to give ATAC’s board a chance to reconsider its rejection, Victoria is pushing ahead the expiry date for the offer to 5 p.m. pacific standard time on Friday, February 17. Victoria has no intention of performing a hostile takeover.

“Our offer is more than reasonable given that, although we see opportunities at ATAC’s properties, we are also aware that risks lie ahead, including the uncertainty surrounding the advancement of permits at the Rackla Gold Property,” said McConnell.

“We will not be increasing our offer consideration. We are disappointed our offer has not been taken to ATAC shareholders and we hope that ATAC’s Board of Directors will reconsider not allowing shareholders to decide the outcome for their company.”

ATAC Resources is a Vancouver-based junior copper and gold explorer. It possesses properties in Yukon, British Columbia and Nevada. It’s largest discovery thus far is Canada’s first Carlin-type gold at its Rackla Gold Property in Yukon.

Victoria Gold has no intention of a hostile takeover

Also, ATAC recently added additional copper assets and a project in British Columbia. It holds the oxide gold Tiger Deposit, with preliminary economic assessment economics producing a pre-tax new value of $118.2 million and an

Carlin-type gold ore from the Twin Creeks mine, Nevada. Image from James St.John via wikimedia commons.

internal return rate of 54.5 per cent at a USD$1,400 per ounce gold price.

Miners typically find Carlin Gold in Nevada. It’s a type of gold found in small amounts in sedimentary rock. It generally comes in flakes or nuggets and is often mixed with other minerals like quartz and iron.

Microscopic or dissolved gold in arsenic-rich pyrite and arsenopyrite characterize the deposits. Metallurgists call this type of gold “invisible gold” because it’s only found through chemical analysis. Specifically, this type of deposit is named after the Carlin mine, which is the first large deposit of this type discovered in the Carlin Trend in Nevada.

Carlin gold deposits are a source of some of the world’ most valuable gold coins and jewellery.

Victoria Gold shares are down $0.07 and trading at $9.41 on the Toronto Stock Exchange.

Calibre Mining (TSX: CXB) (OTCQX: CXBMF) is another gold company operating out of Nevada. Last year’s Nevada highlights include successfully completing its drill programs and discovering Carlin style sulphide mineralization at Gold Rock.

Calibre will also prioritize its new Coyote discovery after recent successes. Mineralization intercepts last month include: