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Thursday, January 26, 2017 Derek Macpherson

Augustine Shareholders Approve Merger with RPX


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Earlier this week, Red Pine Exploration Inc. (TSXV:RPX) and Augustine Ventures Inc. (CNX:WAW) announced that Augustine’s shareholders have approved the proposed business combination with Red Pine. As we discussed in a previous post, the two companies entered into an arrangement agreement on November 14, 2016. Upon completion of the transaction, Augustine will become a wholly-owned subsidiary of Red Pine. The transaction is expected to be completed on or about February 1st, 2017. Once completed, Red Pine plans to rename the company Wawa Gold Inc., and will hold a 60% interest in the Wawa Gold Project. The project’s remaining 40% interest will continue to be held by Citabar Ltd. In our view, the completion of this merger is an important catalyst for the company and should help close the valuation gap to peers. Red Pine currently trades at C$41/oz a discount to peers that trade at C$51/oz. As well, we expect the ongoing exploration and resampling programs to benefit the share price.



Derek Macpherson | VP Mining Analysis
Sunneva Bernhardsdottir | Associate, Mining Analysis
Victoria Ellis Hayes | Associate
 
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Company Specific Disclosure Details
Red Pine Exploration Inc. - (TSXV:RPX) - 2,3,4
Augustine Ventures Inc. -  (CNX:WAW) - 2,3,4

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