Awalé is a gold exploration company focused on the discovery of large high-grade gold and copper-gold deposits
Awalé Resources Limited (“Awalé” or the “Company”) (TSXV: ARIC) is pleased to announce that it has entered into a binding letter agreement dated September 12, 2022 (the “Agreement”) with Colossal Gold Resources Limited (“Colossal”) and the shareholders of Colossal (collectively, the “Sellers”) to acquire 100% of the issued share capital of Colossal (the “Colossal Shares” and the acquisition of the Colossal Shares the “Acquisition”). In consideration for the Colossal Shares, Awalé will issue to the Sellers an aggregate of 21,663,138 common shares of the Company (the “Consideration Shares”) which will represent 41% of the outstanding Awalé common shares post-closing of the Acquisition but prior to giving effect to any Awalé common shares issued under the Financing discussed below (the “Financing Shares”). The Consideration Shares are being issued at an agreed deemed price per share of CAD$0.197, a premium of approximately 40% to the Awalé closing share price on September 9, 2022.
Colossal is a private holding company with an exciting gold exploration portfolio focused on the highly prospective, but underexplored, greenstone belt of Suriname, South America (the “Project”). Colossal holds, through its wholly-owned Surinamese subsidiary, Consolidated Gold Resources N.V. (“Consolidated Gold”), a 100% interest in certain existing mineral exploration and exploitation licences in Suriname (collectively, the “Licences”).
Colossal, Consolidated Gold and each of the Sellers, other than Glen Parsons, the Chief Executive Officer and a director of Awalé, are arm’s length to Awalé (see “Related Party Transaction Process” below).
Source: Company Press Release