Shareholders of both Aurogin Resources (AUQ-V, AROG-O) and Morgain Minerals (MGM-V, MGIMF-O) have voted overwhelmingly to a merger of equals of the two junior gold companies under an agreement struck earlier this summer. The new company will be named Castle Gold and will use the ticker CSG on the TSX Venture Exchange.
The merger is expected to close on or before Aug. 29. Aurogin shareholders will receive one Castle share for every two Aurogin shares, while Morgain shareholders will similarly receive one Castle share for every two Morgain shares.
“This marks an historic moment for Aurogin and Morgain shareholders. Their overwhelming support ushers in the creation of a new gold producer, ultimately aimed at filling a growing void in the intermediate producer sector,” said Christopher Babcock, soon-to-be Castle Gold president and CEO, in a statement. “Our organization will have increased reserves and resources, geographical synergies, a stronger mine-building team and a management team committed to focusing its efforts on growing shareholder value in both the near- and long-term.”
Castle Gold will jointly operate Aurogin’s 50%-owned El Sastre gold mine in Guatemala and operate Morgain’s 100%-owned El Castillo gold mine in Mexico. The new company will also continue work on Morgain’s La Fortuna grassroots gold property, in Mexico.