Serabi Gold plc announced that Kenai Resources Ltd's stockholders favored its proposal to purchase the whole share capital of Kenai. Serabi Gold plc was a gold mining and exploration corporation from Brazil. Kenai allowed Serabi to buy its shares through a plan of arrangement.
In July 5, Kenai's shareholders based in Vancouver approved the arrangement in a summit. 99% of the votes were in favour of Serabi. The two companies were just waiting for the Supreme Court of British Columbia to also approve the arrangement on July 10.
The terms of the arrangement said that the shareholders of Kenai would receive 0.85 of one of Serabi's ordinary share in exchange for every Kennai common share acquired. An application would be made for the new Serabi Issues. This was approved in accordance to the arrangement.
The deal would be admitted to the trading of AIM on July 16.
"With recent volatility in gold proces it is even more important for companies to seek to lower their production costs and I continue to belive that a foucs of high grade production will achive good long term results for Serabi," Serabi's CEO, Michael Hodgson, said.
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