Golden Queen Mining has completed the sale of its subsidiary Golden Queen Mining Holdings, which holds a 50% stake in the Soledad Mountain mine.
Canadian company Golden Queen Mining has completed the sale of its subsidiary Golden Queen Mining Holdings, which holds 50% ownership interest in the Soledad Mountain gold-silver mine located south of the town of Mojave in Kern County, southern California, US.
On 7 February 2019, Golden Queen signed a transaction agreement with Thomas M Clay and members of the Clay family and associated entities to sell 100% of the shares of GQM Holdings.
Under the transaction agreement, the buyers have paid Golden Queen $4.25m in cash in exchange for the GQM Holdings shares to release the company of all debt owing to the purchasers, and returned for cancellation all options and warrants held by the purchasers.
The shareholders of the company, including a special majority of disinterested shareholders, have approved the transaction at the annual meeting of the company held on 13 May 2019.
The purchasers also agreed to surrender all 177,701,229 shares of Golden Queen, held by the purchasers, for cancellation. The surrender and cancellation process is underway and is expected to be completed soon.
Under the transaction agreement, the purchasers are also expected to make a contingent payment to the company for sale or transfer of the Soledad Mountain Project to a third party in certain conditions.
Following the sale of GQM Holdings, Golden Queen is left with no active business operation or assets except the proceeds from the transaction.
Golden Queen said that it is planning to evaluate opportunities for acquiring a new business or assets and also intends to complete a consolidation of its outstanding shares on a ‘10 existing shares for each new share’ basis and change its name to Golden Queen Mining Consolidated.
Golden Queen Mining CFO Guy Le Bel said: “Closing this transaction provides the Golden Queen shareholders an exciting opportunity. The Board and management are committed to determining the right next step for the Company.”
For the transaction, Maxit Capital served as financial advisor Morton Law served as Canadian counsel and Dorsey & Whitney as US counsel to the company. Blake, Cassels & Graydon served as counsel to the Special Committee of the board of Golden Queen.