Opinion of the deal from FRCFundamental Research Opinion
"Mining / Exploration Company Name: Ticker Symbol Current Share Price: FRC Fair Value Estimate: Date of PR: Arizona Gold TSX: AZG $0.12 $0.48 June 28, 2021 PR Content Announced a definitive agreement to acquire Golden Predator (TSXV: GPY) in an all-share transaction. Each share of GPY will receive 1.65 shares of AZG, implying a valuation of $30M, net of GPY’s $4M in working capital. The transaction has been approved by both boards. Shareholder meetings are expected to be held in August 2021. FRC Opinion Positive – We believe this is an accretive transaction for both parties. GPY’s primary asset is the past-producing Brewery Creek gold project in Yukon, with 0.8M in M&I, and 1.3 Moz in inferred resources. The acquisition price reflects an Enterprise Value to Resource of $21/oz vs the sector average of $59/oz, making the deal very attractive for AZG. GPY shareholders also benefit as they are receiving a 24% premium. The deal, if completed, will create a diversified portfolio of near-term gold producers in North America. We are expecting M&A activities in gold to pick up, so watch out for companies trading well below $59/oz"