US Gold Corp completes Northern Panther acquisition

Matthew Hall 12 August 2020 (Last Updated August 12th, 2020 17:12)

US-focused gold exploration company US Gold Corp. has today announced that it has closed the acquisition of Northern Panther Resource Corporation in an all-share transaction under a merger agreement between US Gold and Northern Panther.

US Gold Corp completes Northern Panther acquisition
Exploration work at US Gold‘s Copper King project. Image Credit: US Gold.

US-focused gold exploration company US Gold Corp. has today announced that it has closed the acquisition of Northern Panther Resource Corporation in an all-share transaction under a merger agreement between US Gold and Northern Panther.

Several Northern Panther shareholders have also led concurrent financing in which a total of up to $8m in additional capital was brought to the company. Under the terms of the merger agreement, US Gold has issued 581,053 restricted common shares to shareholders of Northern Panther, in addition to 106,894 shares of newly created Series H perpetual preferred stock. Each share of the Series H stock will potentially convert into 10 common shares of US Gold following a shareholder vote, anticipated at the company’s next annual general meeting.

Understanding the deal

Northern Panther is a recently-formed company backed by mining industry figures with decades of experience in developing projects including George Bee – the former CEO, president and director of Andina Minerals – and Robert Schafer, who has more than 40 years’ experience in exploration as well as mergers and acquisitions across the mining sector. Schafer has previously served in executive management and board roles at Kinross Gold, Hunter Dickinson, and BHP.

The deal provides US Gold with a new exploration opportunity in Northern Panther’s principal asset, the Challis Gold project in Idaho. Northern Panther also holds $2.5m in cash. The company has identified Challis Gold as a high-priority, drill-ready target in a “premier and growing US gold district”, according to a statement from US Gold.

US Gold said that the Challis Gold project has a historic resource of approximately 318,825 ounces of gold at a grade of 1.22g/t, with a potential low strip ratio and exploration upside potential. The company plans to design future exploration programmes to advance the project.

US Gold comments on the deal

“Northern Panther Resource Corporation is another strategic acquisition for US Gold Corp.  In addition to acquiring this new high potential exploration project, we are very pleased to welcome Mr George Bee, Mr Robert Schafer and others as new shareholders of US Gold,” stated Edward Karr, President & CEO of US Gold Corp.

“This acquisition was very attractive for our Board, and we view this as a win for our shareholders,” Karr continued. “We are acquiring not only an additional high-potential exploration project but a significant cash balance and some of the industry’s leading shareholders, who plan to be very hands-on going forward.  The Challis Gold project is located in the western state of Idaho and has, we believe, significant upside exploration potential.  USAU shareholders now benefit from exploration and development projects in three of what we believe are the best US states for mining development – Wyoming, Nevada and Idaho.”

US Gold company overview and share price

US Gold is a gold exploration company with a portfolio of exploration properties in the US, including the 100% owned Copper King, a development stage gold-copper deposit in the Silver Crown mining district of southeast Wyoming. US Gold also holds several exploration properties across Nevada.

US Gold is listed on the New York Stock Exchange, where its share price rose more than 5% following the announcement of the Northern Panther closure, the company’s highest share price in 2020.