Roxgold Inc. (TSXV:ROG) announced that it has completed the acquisition for Burkina Faso interests from Riverstone Resources Inc.(TSXV:RVS)
As quoted in the press release:
As consideration for the Interests, Roxgold paid to Riverstone total consideration of approximately $36 million, comprising of $17 million in cash and 16 million Roxgold common shares having a value of approximately $19 million based on the closing price of Roxgold common shares on October 25, 2011. Upon closing of the Transaction, Riverstone owns 16,980,000 Roxgold common shares, representing approximately 19% of Roxgold’s issued and outstanding shares, on a non-diluted basis, after giving effect to the conversion of Subscription Receipts described below. The Roxgold common shares issued to Riverstone as part of the Transaction are subject to a six month contractual hold period (and a concurrent four month statutory hold period).
Roxgold initially held an option to earn up to a 60% interest in each of the Projects and recently fulfilled the requirements to earn a 60% interest in Yaramoko. Under the Transaction, Roxgold has concurrently (i) been deemed to have exercised its option in respect of Bissa West and Solna (and satisfied the conditions to such exercise) thereby acquiring a 54% interest in Bissa West and a 60% interest in Solna, and (ii) acquired the remaining 40% interest in each of Yaramoko and Solna, and the remaining 36% interest in Bissa West. As a result, upon closing of the Transaction, Roxgold owns 100% of each of the Yaramoko and Solna Projects, and 90% of Bissa West (which is subject to a 10% carried interest in favour of a previous property owner)