beneficial deal for FF at this time Keith Neumeyer, Chairman of First Mining, stated: “We believe that the current market climate for junior exploration companies remains very challenging and thus requires consolidation and that only companies with attractive assets and supportive shareholder bases will survive this market cycle which may last for years. We believe this transaction provides an excellent opportunity for the shareholders of Goldrush to be part of a leading exploration and development company with a dedicated, focused and experienced management team.”
Len Brownlie, President and CEO of Goldrush, stated: “For over a year, we have attempted to acquire a gold project that would significantly enhance shareholder value. After reviewing over 90 projects, we believe that this transaction with First Mining offers the best potential benefit to Goldrush shareholders by enabling them to obtain a premium to the current market price for their shares while continuing to provide them with exposure to gold assets in a larger, more diversified company with sound management and other promising projects that will be well positioned for any eventual rise in the gold market.”
SUMMARY OF PROPOSED TRANSACTION
Under the terms of the Agreement on closing each Goldrush shareholder will receive 0.0714 common share of First Mining for each Goldrush common share held. First Mining will issue a total of approximately 11,950,834 common shares to the former Goldrush shareholders, valuing Goldrush’s equity at approximately CAD$4.42 million. Following the completion of the transaction, the current shareholders of Goldrush will hold approximately 3.9% of the issued and outstanding shares of First Mining.