Vote in favour of acquisition by Castillian Resources
The site of the Castillian Resources’ exploration camp, for its Hope Brook gold project. — File photo
Shareholders of Ridgemont Iron Ore are re-focusing their interest on gold opportunities, voting in favour of a deal with gold-seeking Castillian Resources.
Ridgemont Iron Ore has been operating as a junior explorer in the Labrador iron boom, but will now put its capital into Castillian’s efforts to establish a viable gold project in the area of the former Hope Brook gold mine.
A vote on a proposed deal between Castillian and Ridgemont was held at a special meeting Monday, with just over 99 per cent of the votes cast by Ridgemont shareholders in favour of making the deal.
Castillian will take on 100 per cent of outstanding shares for the iron ore junior while, “Ridgemont shareholders are entitled to receive 0.593 of a Castillian common share for each common share of Ridgemont held,” notes a statement issued Tuesday.
President of Castillian Resources, Bill Pearson has told The Telegram the deal came together well and is a result of work on both sides.
“(The) gold market is very tough right now, but we have a clear path forward to get the drills turning again at Hope Brook which is great news for us and also for southwest Newfoundland,” he stated in an email.
Approval of the deal was received Tuesday from the Supreme Court of British Columbia, where Ridgemont is headquartered.
As reported, the board of directors for Ridgemont Iron Ore had unanimously agreed with the deal earlier this year, announcing they would take it to their shareholders for a vote.
The agreement is expected to come into effect Friday. The deal is subject to final approval from the TSX Venture Exchange.