Lexington Gold Ltd, a Bermudian gold exploration and development firm, has agreed to conditional deals to buy a 76 percent stake in South African peer White Rivers Exploration Proprietary Ltd (WRE).
Under the move, Lexington Gold will issue 1.2 billion new ordinary shares at a price of $0.06 per share to White Rivers shareholders and also offer a loan of $1.9 million to White Rivers for working capital purposes.
Expected to close by the end of June 2023, the proposed acquisition of White Rivers, with its substantial portfolio of gold assets, represents an opportunity for Lexington Gold.
Besides, the move is subject to certain conditions, including due diligence, regulatory approvals, and shareholder approval by both Lexington Gold and White Rivers shareholders.