Premier Gold Mines (PG.TSX) announced that the securityholders of Bridgeport Ventures Inc voted overwhelmingly in favor of the definitive agreement whereby Bridgeport will acquire Premier Gold’s wholly-owned subsidiary, Premier Royalty Corporation. The Canadian-based gold company also noted that the listing of the combined company has been conditionally approved by the Toronto Stock Exchange. However, the transaction remains subject to the final approval of the Ontario Superior Court of Justice, which is scheduled to hold a hearing on the matter on December 3rd.
* The combined company (New Bridgeport) is expected to change its name to Premier Royalty Inc
* All existing directors and management of Bridgeport will resign, other than Hugh Snyder and Shastri Ramnath who will continue as directors of New Bridgeport
* Premier Gold Mines will have the right to nominate six of the eight directors of New Bridgeport and the new management team shall be set by Premier Gold
Abraham Drost, Chairman of Premier Royalty:
“Premier Royalty’s planned business combination with Bridgeport forms our awaited go-public event. The move will provide additional cash and equity capital for new royalty acquisitions and complement a strong shareholder base which will help advance the company’s growth plans significantly.”
Shastri Ramnath, Bridgeport President and CEO:
“The acquisition of Premier Royalty by Bridgeport will expose Bridgeport shareholders to a well-managed company with a diversified portfolio of gold royalty assets, many of which are in production and operated by prominent gold producers and will form the core of a business with excellent growth potential, particularly in the current economic climate.”