U.S. Gold Corp. (USAU) Closed All-Share Transaction To Acquire Northern Panther Resource Corporation

U.S. Gold Corp. (USAU) pursuing a merger agreement has concluded the acquisition of Northern Panther Resource Corporation. The deal closed as an all-share transaction, merging Northern Panther with U.S. Gold Corp. as its new subsidiary company.

Challis Gold exploration project is major asset of Northern Panther. With completion of the merger deal, several of its shareholders came up leading a concurrent financing. Through that option, Northern Panther will receive up to $5.5 million against subscription of its preferred stock shares and warrants. The company has an amount of $2.5 million as cash in hand. This brings in total capital of $8.0 million for the company.

The deal eventually will bring those gold exploration project and capital assets of Northern Panther in for U.S. Gold Corp. The Idaho-based Challis Gold Project will now be the newest gold exploration project of U.S. Gold Corp. Idaho has been a premier and growing gold district in the United States with Challis Gold a drill ready project in that district. And founding group of Northern Panther has a vast experience of building mining companies up that project.

As part of the merger, 581,053 restricted common shares have been issued by U.S. Gold Corp. to Northern Panther’s shareholders. Additionally, U.S. Gold Corp. has created 106,894 shares of Series H perpetual preferred stock. Holders of those Series H shares can eventually convert each share into 10 common shares of U.S. Gold Corp. but after consent of the shareholders. Same is anticipated to be on the company’s Proxy Statement in its next annual general meeting.

In the concurrent financing, U.S. Gold Corp. received subscription from investors. Those were for acquisition of 921,666 shares of newly created Series I preferred stock and warrants. The move by investors is to exercise purchase of 921,666 shares of company’s common stock at a price of $6.00 per share. The exercise is also subject to shareholder voting.

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