VANCOUVER: Red Eagle Mining Corporation just announced that it has formally commenced its share exchange takeover bid to acquire all of the issued and outstanding shares of CB Gold Inc. in exchange for shares of Red Eagle Mining.
Under the terms of the offer, each CB Gold common share will be exchanged for 0.162 of a Red Eagle Mining common share with an implied value of $0.05 per CB Gold Share and an implied total offer value for all outstanding CB Gold Shares of approximately $8,400,000 based on Red Eagle Mining's 20-day volume weighted average share price of $0.31.
The offer will remain open until 4:00PM (Toronto time) on August 5, 2015, unless withdrawn or extended.
The offer represents a premium of 46% to CB Gold's 20-day VWAP of $0.035 and to CB Gold's closing Share price of $0.035 on June 12, 2015, the last trading day prior to CB Gold's announcement of Red Eagle Mining's proposal.
Pleae visit www.redeaglemining.com.