It looks like we are getting closer to the finish line — shareholders of Gold Canyon Resource (GDCRF/GCU.V) almost unanimously approved of the merger with First Mining Finance (FFMGF/FF.V).
From First Mining Finance:
Of the votes cast by Gold Canyon shareholders at the Gold Canyon meeting, 99.2% were voted in favour of the special resolution approving the Gold Canyon Arrangement (99.17% after excluding the votes required to be excluded pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions for the purposes of determining minority approval for the Gold Canyon Arrangement)
Further, First Mining Finance also received 99.77% shareholder approval to consolidate with PC Gold. Both deals are expected to be finalized by the end of this week:
Each of Gold Canyon and PC Gold will be seeking final court approval of their respective Arrangements on November 10, 2015 and, subject to the satisfaction of certain customary closing conditions, the Arrangements are anticipated to be completed on or about November 13, 2015
As a shareholder of 70,000 shares of GDCRF and 30,000 shares of GCU.V, this is of course wonderful news.
I am looking forward to having my 100,000 shares of Gold Canyon converted into First Mining Finance very soon. Upon announcement of the news, shares of FF.V are down 7.50% this morning, trading at C$0.370/share. GCU.V is down 4.17%, trading at C$0.345/share.
Shares are probably down because of the impending dilution… But in the case with First Mining Finance, their business model has always been to issue paper to expand the company; they prefer to look at these deals as growth through accretion, not dilution.
When you are buying up quality assets at the bottom of a business cycle, I am very much inclined to agree!
Looks like the arb opportunity is still there? About 7% or so… At one point in time, the arb was as wide as 30%…
It appears to be a near slam-dunk now… But as I’ve learned in the past, never count your chickens until they hatch!
But seriously, who doesn’t want to support a CEO like Keith Neumeyer who puts his money where his mouth is?
From Canadian Insider:
As an investor, you’ve gotta LOVE IT when management believes soooooo much in their own company!
Nevertheless, this is some good news to start the week with! 🙂
Photo Credit: First Mining Finance