Continental Gold Inc. (TSX: CNL; OTCQX: CGOOF) has announced that, at a special shareholders meeting held today, its shareholders overwhelmingly approved the sale of the company to Zijin Mining Group, of China. More specifically, to the acquisition vehicle 2727957 Ontario Inc., a wholly owned subsidiary of Zijin Mining Group Co., Ltd.
The transaction provides for the acquisition by Zijin of the issued and outstanding common shares of Continental by way of a statutory plan of arrangement under the Business Corporations Act of Ontario. Each Continental shareholder will receive cash consideration of $5.50 CAD for each common share held.
- 141,511,265 common shares were cast, representing 66.07% of the total issued and outstanding common shares. Of those votes cast, 139,571,207 common shares, representing 98.63%, were voted in favor of the transaction.
- Of the votes cast by minority shareholders, 97,351,761 common shares, representing 98.05%, were voted in favor of the transaction.
Continental intends to seek a final order of the Ontario Superior Court of Justice (Commercial List) to approve the transaction at a hearing expected to be held on January 30, 2020. Subject to obtaining all required approvals and satisfying all required conditions, the transaction is expected to close in the first quarter of 2020.
Following closing of the transaction, the common shares will be de-listed from the Toronto Stock Exchange and will not be available for trading on the Toronto Stock Exchange or the OTCQX International.