Nordgold completes acquisition of Northquest
London, United Kingdom, 17 October 2016 – Nord Gold SE (“Nordgold”, LSE: NORD), the internationally diversified low-cost gold producer, and Northquest Ltd. (the “Company”, TSX.V-NQ; FWB-N3Q) are pleased to announce the successful completion of the previously announced statutory plan of arrangement (the “Arrangement”) under the Business Corporations Act (Ontario), whereby Nordgold acquired all of the outstanding common shares of the Company that it did not already own. The Arrangement became effective on October 14, 2016.
Under the terms of the Arrangement, each former holder of the Shares will receive $0.26 in cash per Share, and each former holder of the outstanding warrants to purchase Shares (the “Warrants”) will receive $0.10 in cash per Warrant.
Nordgold has delivered to Computershare Investor Services Inc., the depositary for the Arrangement, sufficient funds to enable the depositary to make the payments in accordance with the terms of the Arrangement.
It is anticipated that the Shares will be delisted from the TSX Venture Exchange and the Frankfurt Stock Exchange in the coming days, and that the Company will subsequently cease to be a reporting issuer in the jurisdictions in which it is currently a reporting issuer.
Northquest is a Toronto based gold explorer which owns the Pistol Bay project in eastern Nunavut territory, Canada. The Pistol Bay property consists of 860 square kilometers of mineral rights within the underexplored Rankin-Ennadai greenstone belt. Within Arctic Canada, the project is favorably located within the Arctic Circle with existing infrastructure, and forms a part of Nordgold’s extensive international exploration pipeline. In April 2016, the Pistol Bay Maiden Inferred Resources of 739 koz of gold at 2.95 g/t were announced.
Nordgold (LSE: NORD) is an internationally diversified low-cost gold producer established in 2007 and publicly traded on the London Stock Exchange. Nordgold has a proven track record of operational excellence and benefits from a significant international development pipeline. The Company is relentlessly focused on shareholder value, committed to running safe, efficient, profitable operations, which enable it to generate strong cash flows and in turn, continue to invest in its pipeline of new growth opportunities while generating returns for investors. In 2015, Nordgold produced 950 koz of gold with all-in sustaining costs of US$793 per ounce, maintaining its position at the lower end of the global cost curve.
Nordgold operates 9 mines (5 in Russia, 2 in Burkina Faso and one each in Guinea and Kazakhstan). It has one project in construction phase (Gross in Russia), several prospective projects in feasibility study and preliminary economic assessment/advanced exploration phase and a diverse portfolio of early-stage exploration projects and licences in Burkina Faso, Russia, French Guiana and Canada. Nordgold employs over 8,000 people.