Alio Gold, Rye Patch Gold Announce Merger Deal - Quick Facts

(RTTNews) - Alio Gold Inc (ALO.TO, ALO) and Rye Patch Gold Corp. (RPM.V) announced an agreement whereby Alio Gold will acquire, through a plan of arrangement all of the outstanding shares of Rye Patch. Each common share of Rye Patch will be exchanged for 0.48 common shares of Alio Gold. The offer implies a value of C$1.57 per Rye Patch share. The offer values Rye Patch's outstanding equity (undiluted) at approximately C$128 million.

Existing Alio Gold and Rye Patch shareholders will own approximately 53% and 47% of the combined company, respectively, following the close of the transaction.

Alio Gold will continue to be managed by the executive team in Vancouver, Canada led by Greg McCunn as Chief Executive Officer and Colette Rustad as Chief Financial Officer. In addition, the company will seek to retain Doug Jones from Rye Patch as its Chief Operating Officer.