Union files complaint against Orla Mining, alleging violation of worker rights in Mexico
The complaint is only the second of its kind made from Canada using CUSMA’s RRM process since the trade deal came into force in 2020.
Junior explorer Dixie Gold (TSXV: DG) announced Friday that it has agreed to a friendly takeover by Australia-listed issuer Omnia Metals Group (ASX: OM1) at a significant premium.
Under a negotiated agreement dated October 24, 2023, Omnia made binding terms to acquire 100% of Dixie Gold’s outstanding shares in exchange for 166.66 million common shares of Omnia and a further cash payment of C$3 million.
The consideration represents a premium estimated to be in excess of 600% to Dixie Gold’s value on the date of agreement, which was C$0.09 per share, as calculated by the total cash consideration and equity component using Omnia’s last traded price (A$0.078) with an AUD/CAD exchange rate of 0.8649 denominated by the outstanding capital of Dixie Gold.
Since entering the agreement, Dixie Gold’s stock has surged by more than 177%, trading at C$0.25 apiece as of Friday afternoon. Its market capitalization was approximately C$6.5 million.
“The substantial premium expected to be achieved for Dixie Gold shareholders through today’s announcement reflects arms-length market-confidence in the high-quality portfolio that we have patiently built over time, including our gold and lithium projects,” stated Ryan Kalt, CEO of Dixie Gold, in a news release.
Its portfolio of gold exploration assets is headlined by the Red Lake project, which covers more than 252 square kilometres of the emerging Dixie Gold camp in Ontario. The property is immediately adjacent to projects being advanced by Great Bear Resources and BTU Metals.
In addition to gold, the company also has the Phoenix lithium project located in Northwest Territories, approximately 70 km southeast of the Diavik diamond mine, and the Torp Lake lithium project in Nuvanut, which it acquired from North Arrow Minerals in 2016.
Omnia currently holds a diversified portfolio of exploration-stage projects, with a focus on nickel, copper and platinum group metals.
