News: SBM St Barbara To Acquire Atlantic Gold For C$722 Mln

May 14 (Reuters) - Atlantic Gold Corp AGB.V :

• C$2.90 PER SHARE CASH CONSIDERATION IMPLIES A TOTAL EQUITY VALUE FOR ATLANTIC OF APPROXIMATELY C$722 MILLION
• ST BARBARA TO ACQUIRE ATLANTIC IN FRIENDLY OFFER FOR C$802 MILLION (NOTE 2)
• ATLANTIC GOLD - SHAREHOLDERS WILL RECEIVE C$2.90 IN CASH PER ATLANTIC SHARE HELD PLUS SHARES IN SPINCO THAT HOLDS ATLANTIC'S INTERESTS IN VELOCITY MINERALS LTD
• FOLLOWING COMPLETION OF TRANSACTION, SPINCO INTENDS TO RAISE FUNDS VIA PRIVATE PLACEMENT AND APPLY FOR A LISTING ON TSX-V
• SAYS CASH OFFER IS NOT SUBJECT TO A FINANCING CONDITION
• ATLANTIC GOLD- ST BARBARA INTENDS TO RAISE A$490 MILLION THROUGH CONCURRENT UNDERWRITTEN ACCELERATED NON-RENOUNCEABLE ENTITLEMENT TO PARTLY FUND DEAL
• BALANCE OF DEAL WILL BE FUNDED VIA ST BARBARA'S EXISTING CASH RESERVES
• ATLANTIC GOLD - ST BARBARA ALSO SECURED NEW COMMITTED A$200 MILLION 3 YEAR CORPORATE FACILITY WITH WESTPAC BANKING CORPORATION TO SUPPORT COMBINED CO

Source text : (http://bit.ly/2VIKLBv)

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