Victoria Gold Corp. reports that its board of directors have approved a letter of agreement in which it will acquire all of the outstanding common shares of Gateway in exchange for its common shares.

Victoria has agreed to offer Gateway shareholders 0.50 of a Victoria common share for each Gateway common share held. This represents an approximate 20% premium to Gateway’s 30-day volume-weighted average share price based on Victoria’s 30-day volume-weighted average share price.

Chad Williams, President & CEO of Victoria says:

“We have a high level of confidence in the exploration potential of each of Victoria’s existing advanced exploration gold projects such as Cove, Mill Canyon, Hilltop, and Summit. This transaction was driven predominantly by the strong conviction of our exploration team that our innovative exploration expertise will provide a fresh approach to Gateway’s projects, thereby unlocking increased potential for a rapid new discovery.”

Michael McInnis, President and CEO of Gateway comments:

“We have been evaluating growth opportunities in Nevada for some time and this is the transaction that makes the most sense for our shareholders. We are very impressed with the Victoria team and their property portfolio. In the shorter term, our shareholders receive an attractive premium and financial support to advance our projects. In the longer term, we will benefit from Victoria’s aggressive growth plans and from the combined company’s ability to attract financing from its many supporters.”

For full details of this press release, click this link. Gold Investing News researchers discovered Victoria Gold’s webcast on their website and Gateway Gold’s webcast described on their website. Follow developments in gold mining and exploration for free. Sign on to the Gold Investing Newsletter.