Reyna Silver, Gold Merger: Enhanced Exploration Potential

Reyna Silver and Reyna Gold Merger Announcement

On August 7, 2024 Reyna Silver Corp. (TSXV:RSLV)(OTCQX:RSNVF)(FRA:4ZC) announced its final agreement to be merged with Reyna Gold Corp. Reyna Silver is strategically merging with Reyna Gold acquiring all issued and outstanding shares. Under British Columbian's Business Corporations Act, the merger is carried out using a statutory plan of arrangement. The idea is to unite the assets and strengths of both businesses into one exploration company. This action is expected to improve the exploring portfolio of the merged company, simplify processes, and lower expenses. The boards of both companies have whole support for this deal. The combination will let Reyna Silver investigate and maybe profit from the appealing qualities of Reyna Gold in Mexico. The new company will have improved capital market access and be better capitalized. The mix is supposed to increase operational efficiencies, propel expansion, and release shareholder value. Along with unifying the vision of both businesses, the merger streamlines the management structure. Approved by regulations and shareholder votes, the deal is scheduled to close in September 2024.

Definitive Agreement Signed

Signed on August 7, 2024, the final agreement for the union between Reyna Silver and Reyna Gold With this agreement, both companies formally start their strategic consolidation. It describes the terms and conditions under which Reyna Silver will get Reyna Gold. The deal offers a clear structure for combining the two companies. An important turning point, this signing opens the path for the next stages of the merger process. Typical covenants for transactions of this kind, including non-solicitation clauses, abound in the agreement.

Overview of the Transaction

Reyna Silver will be purchasing Reyna Gold's shares via a share exchange in their merger. Every three Reyna Gold shares owned will be one Reyna Silver share given to each shareholder. Based on the 20-day VWAP of both companies' shares, this exchange ratio presents a 48% premium to Reyna Gold owners. While current Reyna Silver shareholders will hold roughly 90%, the merger will produce Reyna Gold shareholders owning roughly 10% of the new company. Combining the assets and strengths of both businesses is meant to improve shareholder value from the transaction. It seeks to establish a more strong and financially stable exploration business.

Strategic Highlights and Benefits of the Merger

The merger combines the currently joint option between Reyna Silver and Reyna Gold, the Gryphon Summit Project. By means of consistent management and strategic planning made possible by this consolidation, exploration activities become more efficient. The combined company will gain from more capital access, which will help to fund both present and future exploration projects. Significant cost savings come from the merger also removing duplicate administrative and regulatory expenses. These savings might be used for exploration projects, so improving the profitability of the business. The improved management team of the new entity will drive the strategic initiatives and company development. With a mixed spectrum of assets, the portfolio will appeal more to investors. This combination puts the merged company in front of leading silver-lead-zinc-copper exploration entity. The aim is to generate long-term shareholder value and fully appreciate the aggregated assets.

Consolidation of Gryphon Summit Project

The consolidation of the Gryphon Summit Project under one entity will result from merger. This consolidation lets better allocate resources and streamlines project management. More efficiently one can apply unified exploration strategies. The initiative is supposed to gain from more attention and money. Consolidation improves the possibility of good results and value creation. This is a calculated action to maximize the possibility of the project.

Enhanced Exploration Opportunities in Mexico

Reyna Silver will buy the beautiful gold qualities from Mexico of Reyna Gold. These qualities present great chances for income and exploration value. The merging lets a more concentrated and effective exploration effort be possible. The total knowledge and tools will improve the effectiveness of exploration. Unlocking the value of these assets and producing returns for shareholders is the aim. This calculated purchase is supposed to propel expansion and development.

Financial and Operational Benefits

The combination produces a bigger company with more capital market access. This capital will help the combined portfolio be explored and developed. The merger improves financial efficiency by removing duplicate administrative and regulatory expenses as well. These financial reductions will improve the company's profitability and free more funds for exploration projects. Economies of scale will help the united entity to strengthen its competitiveness in the market. The better balance sheet of the new business will help to support strategic investments and expansion projects. Combining the assets and strengths of both companies should release a lot of shareholder value from the merger. Efficiency and output will be driven by the simplified operations and consistent management system. Given a varied range of assets, the combined exploration portfolio will appeal more to investors. The combination seeks to produce an operationally effective and financially strong exploration company.

Increased Access to Capital

The bigger overall company will have easier access to capital markets. This improved access will help both fresh and continuing exploration initiatives. The better financial situation will draw more investors, so promoting the expansion of the business. Effective use of the capital will help to maximize returns and assist strategic projects. One main advantage of the merger is this higher financial strength.

Reduction in Administrative Costs

The merger reduces back-end administrative and regulatory duplicity. This lowering increases general profitability and financial efficiency. One can direct the cost savings toward activities in exploration and development. Simplified processes will improve the competitive posture and market presence of the business. These efficiencies should raise value for shareholders, so benefiting them.

Shareholder Impact and Considerations

Based on the 20-day volume-weighted average price of both companies, the merging gives Reyna Gold owners a 48% premium. Every three Reyna Gold shares owned will be one Reyna Silver share given to each of the shareholders. This exchange ratio guarantees reasonable value for owners of Reyna Gold and helps to match their interests to the new company. While current Reyna Silver shareholders will hold roughly 90%, the merger will produce Reyna Gold shareholders owning roughly 10% of the new company. The deal is supposed to improve shareholder value by building a stronger, more competitive exploration company. The combined entity will have more capital availability, which will support both present and future exploration initiatives. The combination seeks to lower expenses, simplify processes, and increase financial effectiveness. These developments are supposed to unleash long-term shareholder value and propel expansion. The merged business will be in a strong position for upcoming prospects and development.

Premium for REYG Shareholders

The companies' 20-day VWAP will determine a 48% premium for Reyna Gold shareholders. This premium guarantees fair compensation for Reyna Gold owners and reflects the value creation possibility of the merger. The exchange ratio is meant to give all the shareholders fair value. For owners of Reyna Gold, this premium is a main advantage of the merger. It stresses the financial and strategic benefits of the deal.

Share Exchange Ratio Details

Three Reyna Gold shares for every one Reyna Silver share forms the merger's exchange ratio. For owners of Reyna Gold, this ratio offers reasonable value and guarantees a fair sharing of the equity of the whole business. About 10% of the new company will be owned by Reyna Gold shareholders, so matching their interests with the success of the new business. This ratio supports the merger's strategic goals and captures the relative value of both businesses. Crucially important in the merger agreement is the exchange ratio.

Timeline and Approval Process

Subject of several approvals, the merger is expected to close in September 2024. These cover approval from British Columbia's Supreme Court, regulatory authorities, and Reyna Gold shareholders. September 2024 will see a special meeting of Reyna Gold shareholders to decide on the merger. Additionally needed for the merger is TSX Venture Exchange approval. The boards of both companies have approved the merger, and special committees of independent directors have also recommended it. Shareholders in a management information circular will receive comprehensive transaction details. The terms and conditions of the merger as well as the advantages for the shareholders will be covered in this paper. Once all approvals are gathered and conditions are satisfied, the deal is supposed to close. The aim is to finish the merger quickly and successfully so building a stronger exploration company. Finalizing the merger depends on the approval process, which is absolutely important.

Special Meeting of REYG Shareholders

At a September 2024 special meeting, Reyna Gold shareholders will cast votes on the merger. Two-thirds of the shareholders must vote this one. Before the meeting, shareholders will get comprehensive information that will help them to decide with knowledge. One of the most important phases of approval is the conference. The merger cannot go forward without shareholder approval.

Regulatory Approvals and Conditions

Included among several regulatory approvals needed for the merger are those from the TSX Venture Exchange and the Supreme Court of British Columbia. For the merger to close, all conditions precedent must be satisfied either exactly or waived. Once these approvals come in, the transaction is supposed to close. The regulatory approvals guarantee that the merger follows all legal and administrative criteria. Successful completion of the merger depends on this phase.

For more information, visit: https://www.reynasilver.com/

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