VANCOUVER, July 12, 2017 /CNW/ - Leagold Mining Corporation
(TSX-V: LMC) ("Leagold" or the "Company") is pleased to announce it
has received Mexican anti-trust commission ("COFECE") approval with
respect to the previously announced US$29
million subscription receipt financing provided by a fund
managed by Orion Resource Partners ("Orion") in connection with the
Company's acquisition of the Los Filos Mine from Goldcorp Inc. on
April 7, 2017. To accommodate
COFECE requirements, when acquiring the Los Filos Mine, Orion's
US$50 million equity investment in
Leagold on April 7, 2017 was split
into US$21 million in common shares
of Leagold and US$29 million in
subscription receipts, with each subscription receipt automatically
converting into one common share on receipt of the COFECE approval,
without payment of additional consideration. In connection
with the acquisition of the Los Filos Mine, Goldcorp Inc. agreed to
defer US$29 million of the
US$279 million cash portion of the
purchase price by accepting a short-term promissory note from
Leagold.
With the COFECE approval now received, the US$29 million in subscription receipts have
converted into 14,146,728 common shares (the shares were previously
priced at C$2.75) and the
US$29 million proceeds have been paid
to Goldcorp in satisfaction of the promissory note. Orion now
holds 24,390,910 common shares representing 16.1% ownership of
Leagold. The additional common shares of Leagold issued to
Orion are subject to a hold period under applicable Canadian
securities laws that will expire on August
8, 2017.
About Leagold Mining Corporation
Leagold is building a new mid-tier gold producer with a focus on
opportunities in Latin America.
Leagold is based in Vancouver,
Canada and is listed on the TSX Venture Exchange under the
trading symbol "LMC". The recent acquisition of the Los Filos Mine,
a low-cost gold producer in Mexico, provides an excellent platform for
growth.
On behalf of Leagold Mining Corporation
Neil Woodyer, Chief Executive
Officer
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Leagold Mining Corporation