Pilot Gold (PLG.TO) has announced late last month that it has completed the acquisition of Cadillac Mining which owned the Goldstrike project in Utah. According to Pilot’s geologists, this project seems to be another Carlin-type project located off the main trend, and we have the impression the technical team at Pilot Gold is very eager to start exploration work on the property to repeat its previous exploration success at the Mt Kinsley project in Nevada.
All Cadillac shareholders received 0.1295 shares of Pilot Gold and 0.1295 warrants of Pilot Gold exercisable at C$2.00 during two years. As the shares of Cadillac Mining were trading at a premium to the offered price in shares, it looks like the Cadillac shareholders were quite keen to get their hands on some warrants, even though the share price would have to increase by 50% before these warrants are in-the-money.
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Disclosure: The author holds a long position in Pilot Gold. Please see our disclaimer for current positions.
