Update: Cadillac Mining Shareholders Accept Pilot Gold Offer

| About: Pilot Gold, (PLGTF)


Cadillac Mining’s shareholders approve the offer made by Pilot Gold.

This was generally expected as the offer was very fair and reasonable, and the combined entity is much stronger than Cadillac as a standalone operation.

The investment thesis remains standing, as I was counting on this transaction to close.

Cadillac Mining has announced the results of an extraordinary general meeting with as sole point on the agenda a vote on the offer made by Pilot Gold (OTCPK:PLGTF) to acquire all of the outstanding shares of Cadillac Mining. As expected, the proposal was accepted with a stunning 99.99% of the shareholders voting in favor of the offer (I believe this is a situation for which the word 'overwhelming' was created for), so there isn't much in the way to complete the acquisition.

The next step is to get approval from the Supreme Court of British Columbia, but as this is a non-event, I don't expect any problems to get the approval of the court tomorrow. If the approval is received tomorrow, Cadillac and Pilot Gold expect the transaction to be concluded by the end of this week, when all shareholders of Cadillac Mining will receive 0.12195 shares of Pilot Gold and 0.12195 warrants to acquire an additional share of Pilot Gold at a price of $1.82/share.

As expected, the transaction is still on, and there might be some short-term selling pressure on Pilot Gold as I can imagine some of the Cadillac Mining shareholders will cash in their shares of Pilot Gold to keep the warrants. As you could read in my original article, I'm quite bullish on the combination of both companies, and I expect Pilot Gold's technical team to improve Cadillac's exploration projects.

Disclosure: The author is long PLGTF.

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