Tuesday, February 25, 2014

RTG Mining enters into merger agreement with Sierra Mining Limited

RTG Mining Inc., an international mining exploration company incorporated in the British Virgin Islands and listed on the main board of the Toronto Stock Exchange, and engaged in developing gold deposits in Africa, announced entering into merger agreement with the mining company Sierra Mining Limited, which has six gold-copper exploration projects along the fertile Philippines Rift Fault, including High grade polymetallic Mabilo Project and high grade gold Bunawan Project.

Under the terms of the merger agreement, 3 RTG shares will be given for every 1 Sierra Share and 1 RTG warrant, ex price C$0.15 and 3 year term, for every 3 Sierra shares. There is no need for raising capital in connection to this transaction. The consideration represents about A$0.301 or C$0.301 per Sierra share; a premium of 27.4% to the 30 day VWAP of the Sierra share price based on the 30 day VWAP of the RTG share price.

As a result of the merger, the combined entity will be led by a management team which holds the exploration, mine development and operating experience in the Philippines to progress Sierra's Mabilo and Bunawan Projects.