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Golden Predator-Viva Gold merger falls through

Southeast Yukon, Canada – Image courtesy of Golden Predator Mining

Golden Predator Mining (TSXV: GPY) and Viva Gold (TSXV: VAU) have mutually agreed to terminate their definitive arrangement agreement for the proposed acquisition of Viva Gold by Golden Predator.

In early March, Golden Predator announced it would acquire all issued and outstanding shares of Viva Gold at a 35% premium, creating what would be a “premier junior gold producer.”

In Monday’s press release, Golden Predator advised that, regardless of the terminated agreement with Viva Gold, it will proceed with its plans to distribute 8.62 million common shares of C2C Gold Corp. to the company’s shareholders.

Golden Predator is advancing the past-producing Brewery Creek mine in the Yukon towards a timely resumption of mining activities. The project has established resources grading over 1.0 g/t Au and both a technical report and bankable feasibility study underway to define the economics of a restart of heap leach operations.

The company is currently working with the Yukon Department of Energy, Mines and Resources, and the Yukon Water Board to renew its mining and water use licenses, with the ongoing support of the Tr’ondek Hwech’in First Nation.

Meanwhile, Viva Gold will continue to develop its Tonopah project, located on the Walker Lane gold trend in Nevada. The project contains 12.8 million measured and indicated tonnes at 0.79 g/t Au and 8.4 million inferred tonnes grading 0.67 g/t Au.

Shares of Golden Predator (C$36.3 million market capitalization) and Viva Gold (C$10.8 million market capitalization) were down 4.4% and 5.1% respectively on the TSX Venture Exchange by 12:30 ET.