Pilar Gold is proud to announce that it has completed the acquisition of the Laiva Gold mine in Finland. We believe Laiva will become an outstanding success for Pilar Gold shareholders over the coming years and are excited to restart Europe´s largest gold mill by tonnage in the spring.
We would like to thank both teams at Deloitte Touche Tohmatsu in Copenhagen and Castrén & Snellman Oy in Helsinki. We also want to especially thank Lars Purlund who has managed the whole process over the last 9 months and been a pleasure to work with.
Pilar Gold acquired 100% of Otso Gold OY from its Swedish parent company Otso Gold AB, following a court-mandated restructuring conducted by Castrén & Snellman Oy. The Finnish court approved the restructuring on November 11 giving Otso Gold OY a clean balance sheet, free of debt and creditor liabilities.
We bought Otso Gold OY for US$1.5m in cash, a 2.5% royalty on future Laiva production, 30 million common shares in Pilar Gold at a deemed price of C$1.00 per share and 10 million Pilar Gold warrants at C$1.50. The transaction is highly accretive for Pilar Gold shareholders representing a share value of US$23.5 million or 12.3% new shares. Concurrent with the acquisition, a major global fund invested C$3.1 million in Pilar Gold by way of an equity investment.
Laiva is our third acquisition in the last 2 years and is key to achieving a medium term production target of 200,000 ounces. We like to buy big second hand gold mines and are actively searching for other opportunities that will help us reach our long term ambition of 500,000 ounces a year. We want to use this down time in the equity markets to bulk up for a mid 2023 go public listing.
