Austral Gold
(ASX:AGD) has moved closer to the acquisition of Argentex Mining Corporation, entering into a definitive arrangement agreement with the company.
The agreement provides for the acquisition by Austral of all outstanding Argentex securities not already owned by Austral and its controlled entities, by way of a share-for-share exchange plan.
The transaction contemplates an exchange ratio pursuant to which each outstanding common share of Argentex will be exchanged for 0.5651 of an ordinary share in Austral. The ratio may be subject to adjustment in certain circumstances.
The execution of the agreement now clears the way for Argentex to seek the approval of its shareholders for the merger transaction, as announced on 31 August 2015.
Austral recorded a net loss of $6.88 million at 30 June 2015.
