Energold Drilling Corp. (TSXV:EGD) agreed to acquire Cros-Man Direct Underground Ltd. for CAD 5.9 million on March 4, 2016. Under the terms of share purchase agreement, Energold Drilling acquired all of the issued and outstanding shares of Cros-Man Direct Underground for CAD 3.5 million in cash on closing to the vendors and has agreed to pay an additional amount equal to CAD 0.74 million to the vendors at the end of the first year following the closing date and CAD 0.84 million per year to the vendors at the end of second and third years following the closing date. Management also has the opportunity to earn a performance incentive of up to CAD 0.53 million per year for the next three years following the closing date as it targets certain growth metrics. 60% of the earnout amounts for each applicable year will be payable to the vendors in cash and the remaining 40% of the earnout amounts will be payable to the vendors, at the option of Energold Drilling, either by cash or through the issuance of common shares in the capital of Energold. The upfront payment has been paid using a combination of cash on hand and existing credit facilities.

Energold Drilling has agreed to retain the existing management and employees of Cros-Man Direct Underground. Energold expects the acquisition to be immediately accretive to its net income per share. CB4 Consulting Inc. acted as financial advisor and Ammeter Law Group acted as legal advisor for Cros-Man Direct Underground. EY acted as financial advisor and Norton Rose Fulbright Canada LLP acted as legal advisor for Cros-Man Direct Underground. As part of the completion of the acquisition, Energold Drilling has agreed to pay on the closing date, a finder's fee of approximately CAD 0.12 million to Osprey Capital Partners Inc. and an additional amount of up to CAD 0.008 million for each of the next three years following closing. Energold Drilling was assisted in financing the transaction from RBC Royal Bank. Osprey Capital Partners Inc. acted as financial advisor to Energold Drilling Corp.

Energold Drilling Corp. (TSXV:EGD) completed the acquisition of Cros-Man Direct Underground Ltd. on March 4, 2016.