NV Gold (NVX.V) has now entered into a definitive agreement with Redstar Gold (RGC.V) to acquire all of Redstar’s exploration assets in Nevada. As you might remember, Redstar required NV Gold to raise C$350,000 and as it now has increased the size of its private placement to C$550,000, that condition will be met, as the company’s CEO is investing at least C$117,000 of his own money in NVX.
As part of the definitive agreement, Redstar Gold will be issued 6 million common shares of NVX, and has nominated Ken Booth and Peter Ball to the board of directors of NV Gold. Redstar will own 29.9% of NV Gold’s shares upon closing the transaction so if NV Gold will indeed raise a total of C$550,000, Redstar will receive an additional 172,730 shares to bring its total position at 6.17M. This strategic position in NVX, which aims to become a prospect generator in Nevada, currently has a value of C$1.85M using last Friday’s closing price of C$0.30 per share.
Redstar’s share price has gained some momentum lately and has been trading consistently above C$0.10 per share, but keep in mind that later today the C$0.06 placement that was completed in May is becoming tradeable, which might put some pressure on the share price so there might be an opportunity to pick up stock below the C$0.145 level where Redstar closed on Friday.