Shareholders of Fronteer Gold will receive approximately $14 and one common share in a new company, Pilot Gold.
The new company will own certain exploration assets of Fronteer Gold, for each common share of the company.
Fronteer Gold has a total of 4.2 million ounces and Inferred resources of 1.7 million ounces of gold resources at Long Canyon, Northumberland and Sandman.
Pilot Gold will own a portfolio of Fronteer Gold’s exploration properties in Nevada, Turkey and Peru, and will be capitalized at closing with about $10.1m.
Upon closing of the transaction, Fronteer Gold shareholders will hold an aggregate 80.1% interest in Pilot Gold, and Newmont will hold the remaining 19.9% interest.
