BVI-registered Aura Minerals Inc. entered into an agreement with Rio Novo Gold Inc. to combine and create strong portfolio of long term mining properties. The combination will be effected by the plan of merger pursuant to which Aura will acquire all the shares of Rio Novo and Rio Novo shareholders will receive 0.053 of an Aura common share for each Rio Novo share.
The new combined entity will operate under the Aura name and will remain listed on the Toronto Stock Exchange. The combination is subject to the approval of a majority of the votes cast at special meetings of Aura and Rio Novo shareholders to be held on or about February 2018, as well as minority shareholder approval.
Northwestern Enterprises, which is holding approximately 52% of Aura's common shares and 65% of Rio Novo's common shares, entered into a customary voting and support agreement pursuant to which, among other things, it has agreed to vote its Aura common shares and Rio Novo common shares in favour of the transaction. Following closing the transaction, it is expected that the combined company will have approximately 43,039,156 shares issued and outstanding and Northwestern will hold an approximate 55.3% interest in the combined company.
