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Valdez Gold stock soars after announcing reverse takeover

VANCOUVER — Stock in Valdez Gold Inc. (TSXV:VAZ) shot up 156 per cent Thursday after it resumed trading for the first time since announcing two months ago that it was negotiating an amalgamation with another gold miner.

VANCOUVER — Stock in Valdez Gold Inc. (TSXV:VAZ) shot up 156 per cent Thursday after it resumed trading for the first time since announcing two months ago that it was negotiating an amalgamation with another gold miner.

Confirmation of the reverse takeover of Valdez by Ryan Gold Inc., a private company with holdings in the Yukon territory, was announced earlier this week.

Valdez shares, which last traded on the TSX Venture Exchange at 25 cents on Sept. 21, soared 39 cents to close at 64 cents on volume of almost 6.3 million shares, making it the fourth most active issue on the venture.

The Valdez-Ryan announcement on Monday also disclosed other agreements between Ryan and Osisko Mining Corp. (TSX:OSK) and between Valdez and Corona Gold Corp. (TSX:CRG).

Assuming the Valdez-Ryan amalgamation and financings are completed, the resulting company will have about $16 million of capital to use for exploration and other expenses.

As part of the amalgamation, Valdez shareholders are being asked to approve a 3.5 to 1 consolidation of the Valdez common shares and a name change to Ryan Gold Corp. at a special meeting on Dec. 15.

Valdez shares are trading on a pre-consolidation basis until the amalgamation becomes effective.