Australian gold production and exploration company St Barbara Ltd. has agreed to buy 100 percent of all issued and outstanding shares of Canada-based peer Atlantic Gold Corp.
Under the pact, Atlantic Gold shareholders will receive $2.15 in cash per Atlantic Gold share held plus shares in a company that holds Atlantic Gold's interests in Velocity Minerals Ltd.
The $2.15 per share cash consideration implies a total equity value for Atlantic Gold of approximately C$722 1 million ($535 million) and a total enterprise value of $595 million.
The transaction will be completed in July 2019, subject to customary closing conditions.