Blyvoor Gold Resources Proprietary and Blyvoor Gold Operations Proprietary ( dba “Aurous”) and Rigel Resource Acquisition announced a business combination agreement at a $362 million equity value.
The target is a producing gold mining group which owns the Blyvoor gold mine and the Gauta tailings retreatment project near Johannesburg, South Africa.
If approved, upon completion Aurous Resources would list on the Nasdaq.
The transaction is expected to provide Aurous with no less than $50 million, before payment of transaction expenses and other payments, drawn from $7.5 million of committed PIPE financing and approximately $278 million of cash in Rigel’s trust account (estimated at transaction close and subject to redemptions).
At closing, debt levels of the resulting company are expected to be approximately $6 million. Net proceeds from the transaction will enable Aurous to continue to invest in improvements designed to accelerate production growth and to lower operating costs at the Blyvoor Mine, which already benefits from a first quartile production-cost position amongst comparable gold mines, according to the announcement.
Citigroup Global Markets is capital markets advisor to Rigel. Citi and Hannam & Partners are co-placement agents in connection with the PIPE. Rand Merchant Bank is acting as financial advisor to Aurous. Sidley Austin and Bowmans are legal counsel to Rigel. Milbank and ENS are legal counsel to Aurous. Davis Polk & Wardwell is legal counsel to Citi and Hannam. Read more.
