The new agreement signed between Dataram Corp (NASDAQ:DRAM) and US Gold Corp. (“USGC”) allows the former to acquire all outstanding shares of the latter and its subsidiaries. The US Gold Corp runs the Copper King Project in Wyoming and owns several mining leases and mineral rights in the area. The company is in the process of acquiring mining claims related to the “Keystone Project” in Eureka County, and this is expected to be completed before it is acquired by Dataram.
The agreement
The agreement stipulates that Dataram will acquire US Gold Corp and its subsidiaries as long as the terms and conditions spelled by the agreement are met. Precisely, the acquisition will depend on customary closing conditions which will be evaluated by the end of the second quarter of the financial year 2017. In this transaction, Roth Capital Partners, LL is Dataram’s financial advisor while Sichenzia Ross Friedman Ference LLP and Windels Marx Lane and Mittendorf LLP are the legal advisors. On the other hand, Laxague Law is US Gold’s legal advisor.
The acquisition is an opportunity which, according to Mr. Dave Moylan, chairman and CEO of Dataram, will create value for all stakeholders. It will allow the company to diversify its portfolio and unlock its potential. Indeed, after the acquisition, Dataram will accentuate production of its memory products and all other operations to serve the interests of all stakeholders.
The opportunities that the acquisition will uncover
Acquisition of US Gold Corp will, among other things lead to appreciation of capital to the benefit of the stakeholders. US Gold Corp will also benefit from the conglomeration of the two companies, according to the company’s CEO and chairman, Mr. Edward Karr. He speculates that gold equities will rebound in 2016, and the US Gold Corp has positioned itself appropriately to benefit from these changes. Its advisory team has seen it through the Preliminary Economic Assessment (PEA) of the Copper King property, whose Net Present Value was $160 million. The acquisition will enhance the value of this project and others.
