Gold Company Set To Be Acquired At A Premium Of 600%

Junior gold exploration company Dixie Gold (TSX-V: DG) announced that the company has entered into an agreement for a friendly-takeover. Under the proposed agreement, Dixie Gold will be acquired by Omnia Metals Group Ltd., an Australian listed exploration company at a premium of 600% from its previous trading price of CAD $.09 per share.

Dixie Gold’s CEO Ryan Kalt was quoted “We are pleased to announce this transaction and its premium. Under Mark Connelly’s leadership, the team at Omnia have a demonstrated track record of being able to add material market value to compelling asset bases. The substantial premium expected to be achieved for Dixie Gold shareholders through today’s announcement reflects arms-length market-confidence in the high-quality portfolio that we have patiently built over time, including our gold and lithium projects. Importantly for shareholders, that significant premium would be allocated within Dixie Gold’s tight share structure, with shareholders under an approved and completed transaction expected to receive per share cash consideration greater than the last traded price of the Corporation’s listed security as well as a considerable equity component to further benefit and participate in the growth of Omnia on a pro-forma basis. The management and board of Dixie Gold extends its appreciation to our long-standing shareholders, and I look forward to supporting today’s announcement,”.

Although the transaction agreement has been duly approved by the company’s independent directors, regulatory and shareholder approvals will be needed for the Takeover Transaction to be completed.

Dixie Gold (TSX-V: DG) holds a diverse portfolio of carefully selected exploration projects in Canada. The company’s Red Lake Project is contiguous to Great Bear Resources property and covers over 60,000 acres with 1,241 mining claims in the resource rich region of Red Lake, Ontario.

Dixie’s other properties include the Isko Gold project in Québec, the Phoenix Lithium Project in the Northwest Territories, Torp Lake Lithium Project spanning over 1,003 hectares in Nunavut, and its Preston Uranium Project in the Western Athabasca Basin which is jointly owned with Skyharbour Resources.

After the news was announced, shares of DG have catapulted 205% from $.09 and rose to a high of $.275 cents per share during the trading day. Dixie Gold closed the trading day at $.25 with more than 1.95 million shares being traded.




Disclosure: The information herein is meant for informational and entertainment purposes only and does not consist of a recommendation to buy or sell securities. Dixie Gold Inc is not a client of The Resource Report . The information provided by The Resource Report or any of it’s assets or subsidiaries are done so on an “as is” basis, and while every effort is taken to ensure the accuracy of everything contained on this website or article, no warranty of same is expressed or implied. While we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose.  While every caution has been taken to provide readers with most accurate information and honest analysis, we recommend that you consult a registered investment professional in your jurisdiction before undertaking any investment in any asset whatsoever.

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