Balkan Metals Corp. completes reverse takeover of Medgold Resources Corp.

2 minute read
18 January 2024

On January 18, 2024, Electrum Discovery Corp. ("Electrum" or the "Company") (TSXV: ELY) (formerly Medgold Resources Corp. ("Medgold")) announced the closing of its previously-announced transaction resulting in the reverse takeover of Medgold by Balkan Metals Corp. ("BMC"), along with completion of a concurrent non-brokered private placement, a 16-1 share consolidation and name change (collectively, the "Transaction").

As a result of the Transaction, Electrum now holds a portfolio of exploration licences in Serbia covering close to 1,000 square kilometres, making Electrum the largest holder of highly prospective exploration ground in Serbia.  

Pursuant to the terms of an amalgamation agreement entered into between Medgold, BMC and 1397383 B.C. Ltd., a wholly-owned subsidiary of Medgold ("MergeCo") dated January 27, 2023, as amended, the Company completed a three-cornered amalgamation under the Business Corporations Act (British Columbia) with BMC and MergeCo pursuant to which BMC and MergeCo amalgamated and the Company issued 54,888,763 common shares of the Company post–Consolidation to BMC shareholders in exchange for their common shares of BMC.

Immediately prior to closing of the Transaction, Medgold completed the Consolidation, and, at closing of the Transaction, changed its name to "Electrum Discovery Corp.".

In connection with the Transaction, BMC completed a private placement consisting of the sale of 21,600,000 subscription receipts to raise gross proceeds of $2,160,000. 

The Transaction received final approval from the TSXV and resumption of trading of the Resulting Issuer Shares will commence on January 23, 2024. The Resulting Issuer Shares will trade under the symbol "ELY" and the Company will be listed as a Tier 2 Mining Issuer.

Gowling WLG advised BMC with respect to the Transaction with a team that included, among others, Brett Kagetsu, Tara Amiri, Jill Dunn, James Stewart and Danny Long (corporate), assisted by paralegal Toni Vodola.

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