Reyna Gold and Reyna Silver Finalize Strategic Merger and Amend Gryphon Summit Agreement

Reyna Gold Corp. and Reyna Silver Corp. have successfully completed their merger, marking a significant milestone in the mining sector. This strategic acquisition allows Reyna Silver to enhance its portfolio and streamline operations, particularly in the Gryphon Summit Project. The merger is expected to yield synergies that will benefit shareholders and advance exploration efforts.

Key Takeaways

• Reyna Silver has acquired all outstanding shares of Reyna Gold, making it a wholly-owned subsidiary.
• Shareholders of Reyna Gold received one share of Reyna Silver for every three shares held.
• The merger is anticipated to strengthen Reyna Silver's position in the mining industry.
• An amendment to the Gryphon Summit Option Agreement has been finalized, allowing Reyna Silver to assume all rights and obligations.

Details of the Transaction

The merger was executed under a statutory plan of arrangement in accordance with the Business Corporations Act of British Columbia. Each Reyna Gold shareholder received one common share of Reyna Silver for every three shares they held, resulting in the conversion of approximately 22.4 million shares.

• Share Distribution:
  • Former Reyna Gold shareholders now hold about 10% of the total Reyna Silver shares.
  • Existing Reyna Silver shareholders retain approximately 90% of the shares.

The new shares are expected to be available to former Reyna Gold shareholders within 3 to 5 business days. Shareholders who have not yet submitted their letters of transmittal are encouraged to do so promptly.

Impact on Shareholders

The merger is seen as a positive development for both companies, with Reyna Silver's CEO, Jorge Ramiro Monroy, expressing enthusiasm about the integration and future exploration results. The transaction is expected to enhance shareholder value through increased operational efficiencies and a stronger market presence.

Amendment to Gryphon Summit Option Agreement

In conjunction with the merger, Reyna Silver and Reyna Gold have amended their option agreement with Golden Gryphon USA Inc. This agreement allows Reyna Silver to earn up to a 70% equity interest in the Gryphon Summit Project, a significant asset in their portfolio.

• Key Changes in the Agreement:
  • Reyna Silver assumes all rights and obligations from Reyna Gold.
  • Certain cash payments due to Golden Gryphon have been deferred until January 31, 2025.
  • An additional cash payment of $10,000 and 100,000 shares will be issued to Golden Gryphon.

Future Outlook

With the completion of this merger, Reyna Silver is poised to leverage the combined strengths of both companies to explore and develop high-grade silver deposits. The focus will be on the Gryphon Summit Project, which has shown promising mineralization potential.

The companies are optimistic about the future, with plans to advance their exploration initiatives and deliver results that will benefit their shareholders. The merger not only consolidates their resources but also positions them for growth in the competitive mining landscape.

Sources

• Reyna Gold and Reyna Silver Complete Plan of Arrangement and Amend Gryphon Summit Option Agreement, by @accesswire, CEO.CA.
• Reyna Gold and Reyna Silver Complete Plan of Arrangement and Amend Gryphon Summit Option Agreement, Yahoo Finance.