Reyna Silver (RSLV.V), the company pursuing exploration success on its high-grade Batopilas silver project and its CRD projects in Mexico and the United States, has agreed to be acquired by Torex Gold (TXG.TO). Torex will pay C$0.13 in cash for every share of Reyna Silver it doesn’t own yet. Torex has already acquired 11.6M units of Reyna Silver at C$0.095 per unit for total proceeds of C$1.1M, which also protects its interests to see the transaction through.
As there also is a break fee of C$1.4M and an expense reimbursement fee of C$450,000 payable by Reyna Silver if the transaction doesn’t close. The strategic stake of Torex, in combination with the up to almost C$2M in termination fees and penalties likely means Torex will indeed secure ownership of Reyna Silver.
Reyna Silver has already filed the paperwork for a shareholders meeting in August, so we can reasonably expect the deal to be completed before the end of that month.
Disclosure: The author has a long position in Reyna Silver and will tender his position into the C$0.13 cash offer. This post is for educational purposes only; be mindful investing in junior mining stocks is risky and you may lose your entire investment if things go wrong. Please read the disclaimer.
