NWM Mining to acquire Auriga Gold
March 1, 2013
NWM Mining Corporation ("NWM") (TSX-V: NWM) and Auriga Gold Corp ("Auriga") (TSX-V: AIA) are pleased to announce that a non- binding letter of intent has been entered into for the acquisition of all of the outstanding common shares of Auriga. It is anticipated that the Transaction will proceed by way of a three-cornered amalagamation which may be pursuant to a Plan of Arrangement under the Business Corporations Act, (Ontario). It is anticipated that NWM will issue 2.2 pre-consolidation common shares, for each one outstanding common share of Auriga. It is anticipated that the options and warrants of Auriga will be subject to the same share exchange ratio (and resultant price adjustment). Auriga is a Canadian mine development and exploration company focused on re-starting its 100% owned past producing Puffy Lake gold mine.
Auriga Gold was on the 50 bagger list. NWM Mining has a market cap of $14 million. I don’t know why Auriga would join up with a small company, but then most takeovers (and the small amount paid for gold in the ground) never cease to amaze me. With Auriga’s resources, this might make NWM mining an interesting stock. I will analyze them after the merger is completed.