Falco Resources Ltd. entered into a letter of intent to acquire Golden Queen Mining Consolidated Ltd. (TSXV:GQM.H) for CAD 3.2 million.
The completion of the arrangement will also be subject to obtaining required regulatory, stock exchange, court and other approvals, and satisfaction of closing customary conditions. The arrangement will also require the approval of Golden Queen's shareholders at a special meeting expected to take place at the end of March 2020. To become effective, the arrangement must be approved at the Golden Queen Meeting by at least 66 2/3% of the votes cast by Golden Queen's shareholders. The Board of Directors of Golden Queen, on the recommendation of its special committee comprised of independent directors, has unanimously approved the arrangement, and will recommend that Golden Queen shareholders vote for the arrangement. The shareholders representing 19% of the issued and outstanding shares of Golden Queen have entered into voting and support agreements in favor of the transaction. As of February 14, 2020, the transaction was approved by TSX Venture Exchange. As of February 26, 2020, Golden Queen's shareholders meeting will be held on March 24, 2020. As of March 24, 2020, the transaction has been approved the shareholders of Golden Queen. As of March 26, 2020, the Supreme Court of British Columbia granted the final order, thus approving the transaction. The transaction is now expected to close on March 27, 2020. Maxit Capital LP is the financial advisor to Golden Queen. Evans & Evans has provided a fairness opinion to the independent special committee of the Board of Directors of Golden Queen. Andrew McLeod and Sean K. Boyle of Blake, Cassels & Graydon LLP acted as legal advisor to Golden Queen. Josianne Beaudry of Lavery, de Billy, L.L.P. acted as legal advisor to Falco.