Leagold’s frendly acquisition of Brio Gold Inc.

Leagold has retained UBS Investment Bank as its financial advisor in connection with the transaction. Fasken Martineau DuMoulin LLP and Skadden, Arps, Slate, Meagher & Flom LLP are acting as Canadian and United States legal advisors to Leagold.

Leagold Mining Corporation (TSX:LMC; OTCQX:LMCNF) (“Leagold” or the “Company”) has reached an agreement with Brio Gold Inc. (“Brio”) (TSX:BRIO) under which the previously announced proposed take-over bid by Leagold will now be completed on a Brio Board-supported basis by way of a statutory plan of arrangement (“Arrangement”).

Upon completion of the Arrangement, assuming Goldcorp Inc. does not exercise its anti-dilution rights in connection with the Arrangement, former Brio shareholders will own approximately 42% of Leagold, which includes Yamana Gold Inc. (“Yamana”) who will own approximately 22% of Leagold.  Yamana has agreed to hold the Leagold shares it receives pursuant to the Arrangement for a minimum period of 12 months, subject to certain exceptions. Upon completion of the Arrangement, Leagold expects to have approximately 263 million shares issued and outstanding, subject to Goldcorp exercising its anti-dilution rights.

The Arrangement is structured as a plan of arrangement under the Business Corporations Act (Ontario) and, in addition to other customary conditions, is subject to regulatory and court approvals or orders. The Arrangement requires approval by (i) two thirds of the votes cast by Brio shareholders at a meeting of Brio shareholders, and if required (ii) a simple majority of the votes cast by Brio shareholders excluding the votes held by certain persons as required by Multilateral Instrument 61-101. Additionally, pursuant to the rules of the TSX, Leagold will require the approval of its shareholders holding a simple majority of Leagold shares to allow Leagold to issue Leagold shares and Leagold Warrants under the terms of the Arrangement.

Brio’s shareholder meeting is expected to be held in April 2018. As previously announced, Leagold has entered into a support agreement with Yamana. Yamana holds 63,032,488 Brio shares representing approximately 53.6% ownership of Brio on a non-diluted basis. Leagold has also entered into support agreements with all the directors of Brio and certain of Brio’s senior management who in the aggregate hold approximately 3.3% of Brio’s outstanding shares. Pursuant to the terms of the support agreements, each of Yamana, the Brio directors and certain members of Brio’s senior management have agreed to vote all their Brio shares at the Brio shareholders’ meeting in favour of the transaction.

Leagold has also entered into voting agreements in support of the transaction with certain of its shareholders who in the aggregate hold approximately 57% of Leagold’s outstanding shares. The supporting shareholders of Leagold include Goldcorp and certain of Leagold’s directors and officers including Neil Woodyer and Frank Giustra. Subject to approval of the TSX, Leagold will seek shareholder approval by way of obtaining a consent resolution from Leagold shareholders holding at least a simple majority of issued and outstanding Leagold shares.

Brio Gold Inc. operates as a mining company. The Company focuses on exploration, extraction, and production of gold and precious metals. The company, led by Gilmour Clausen in 2016 recorded C$307.9 Million Revenues.

Leagold Mining Corporation is a Latin-American focused gold producer. The Company currently owns and operates the Los Filos gold mine in Mexico. The Company, led by Neil Woodyer, Harpreet Dhaliwal and Douglas J Bowlby, is based in Bent Vancouver.

The Skadden team includes: Corporate partner Riccardo Leofanti (Picture) and associate Colin Brown (Toronto); and Tax partner Eric Sensenbrenner (Washington, D.C.) and associate Robert Stevenson (Washington, D.C.).

In Canada, Fasken Martineau DuMoulin advised Leagold Mining Corporation with Georald Ingborg, Amy Carruthers, Andrew Gabrielson, Michael Coburn, Clayton Jones, John Torrey, Dev Singh, Brad Moore, Alex Nikolic, Sandra Malcolm, Samuel Li, Martin Ferreira Pinho and Markus Liik.

In Brazil, Veirano Advogados advised Leagold Mining Corporation  with Pedro Garcia, Elisa Rezende, Daniela Philbois, Bernardo Costa, Caroline Mollica, Bibiana Silva, Pilar de Barros and Pedro Katz.

In Mexico, Galicia advised Leagold Mining Corporation with Hector Kuri, Carlos Chávez, Florent Patoret, Juan Carlos Burgos and Maite Celorio.

In The Netherlands Stek advised Leagold Mining Corporation with Jeroen Timmermans, Merijn Batteram, Roderick Mutze and Eva van Hees.

In Svizzerland, Homburger advised Leagold Mining Corporation with David Borer and Mario Wälti.

In Brazil, Cescon, Barrieu, Flesch & Barreto advised Orion Mine Finance with Frederico Viana Rodrigues, Marina da Silva Prado, Alice Fulgêncio Brandão, Débora Gonçalves Nogueira and Eduardo Augusto Caixeta Menezes.

In Svitzerland CMS advised Orion Mine Finance with André E. Lebrecht, Mark Cagienard and Stephan Werlen.

In Mexico, Sánchez-Mejorada, Velasco y Ribé S.C. advised Orion Mine Finance with Rodrigo Sánchez-Mejorada Velasco, Jose Eduardo Ribé and Rodrigo Sánchez-Mejorada Raab.

In Barbados, Lex Caribbean advised MXN Silver Corp. and Brio (Barbados) Holdings Ltd. with Dana R. Clarke.

In Brazil, Machado de Campos e Barreto Advogados advised Brio Gold Inc with Luiz Augusto Barreto and Gabriela Campos.

In Canada, Torys advised National Bank Financial Inc. with John Emanoilidis and Kevin Armitage.

 

Involved fees earner: Dana Clarke – Lex Caribbean; Luiz Augusto Barreto – Machado de Campos e Barreto; Gabriela Campos – Machado de Campos e Barreto; Eduardo Ribé Martínez de Velasco – Sanchez-Mejorada, Velasco y Ribé; Rodrigo Sánchez Mejorada Velasco – Sanchez-Mejorada, Velasco y Ribé; Frederico Viana Rodrigues – Cescon, Barrieu, Flesch & Barreto; Alice Fulgêncio Brandão – Cescon, Barrieu, Flesch & Barreto; Debora Goncalves Nogueira – Cescon, Barrieu, Flesch & Barreto; Eduardo Augusto Caixeta Menezes – Cescon, Barrieu, Flesch & Barreto; Marina Da Silva Prado – Cescon, Barrieu, Flesch & Barreto; Héctor Kuri – Galicia Abogados, S.C; Carlos Chávez – Galicia Abogados, S.C; Florent Patoret – Galicia Abogados, S.C; Juan Carlos Burgos Carbajal – Galicia Abogados, S.C; Maite Celorio – Galicia Abogados, S.C; Jeroen Timmermans – Stek; Eva van Hees – Stek; Merijn Batteram – Stek; Roderick Mutze – Stek; André Lebrecht – CMS von Erlach Poncet AG; Stephan Werlen – CMS von Erlach Poncet AG; Mark Cagienard – CMS von Erlach Poncet AG; Pedro Garcia – Veirano Advogados; Caroline Mollica – Veirano Advogados; Elisa Rezende – Veirano Advogados; Daniela Philbois – Veirano Advogados; Pedro Garcia – Veirano Advogados; Bernardo Costa – Veirano Advogados; Bibiana Silva – Veirano Advogados; Pilar Valente de Barros – Veirano Advogados; David Borer – Homburger; Mario Wälti – Homburger; John Emanoilidis – Torys LLP; Kevin Armitage – Torys LLP; Georald Ingborg – Fasken Martineau; Alex Nikolic – Fasken Martineau; Sandra Malcolm – Fasken Martineau; Samuel Li – Fasken Martineau; Martin Ferreira Pinho – Fasken Martineau; Markus Liik – Fasken Martineau; Amy Carruthers – Fasken Martineau; Andrew Gabrielson – Fasken Martineau; Michael Coburn – Fasken Martineau; Clayton Jones – Fasken Martineau; John Torrey – Fasken Martineau; Dev Singh – Fasken Martineau; Brad Moore – Fasken Martineau; Riccardo Leofanti – Skadden Arps Slate Meager & Flom; Colin Brown – Skadden Arps Slate Meager & Flom; Eric Sensenbrenner – Skadden Arps Slate Meager & Flom; Robert Stevenson – Skadden Arps Slate Meager & Flom;

Law Firms: Lex Caribbean; Machado de Campos e Barreto; Sanchez-Mejorada, Velasco y Ribé; Cescon, Barrieu, Flesch & Barreto; Galicia Abogados, S.C; Stek; CMS von Erlach Poncet AG; Veirano Advogados; Homburger; Torys LLP; Fasken Martineau; Skadden Arps Slate Meager & Flom;

Clients: National Bank Financial Inc.; Orion Mine Finance ; Brio Gold Inc.; Leagold Mining Corporation; MXN Silver Corp.; Brio (Barbados) Holdings Ltd.;

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Author: Ambrogio Visconti