Gemcom acquires Surpac Minex Group for $26 million

On July 19, 2006, Gemcom Software International Inc., a global provider of mine production management solutions, announced that it had completed its acquisition of Surpac Minex Group Pty Ltd. of Perth, Australia.

Under the terms of the Acquisition, Gemcom acquired all of the issued and outstanding shares of Surpac Minex for cash consideration of $13,174,455 and 13,084,871 common shares of Gemcom. On July 13, 2006, Gemcom closed a private placement for $12,075,000 of subscription receipts, the proceeds of which were used by Gemcom to partially fund the Acquisition. On the completion of the Acquisition, each subscription receipt was exchanged into one common share of Gemcom and one-half of one warrant, with each whole warrant entitiling the holder to purchase one additional common share of Gemcom at the price of $1.45 for a period of 24 months from the closing of the Acquisition.

Fasken Martineau advised Gemcom in this transaction through the team of Charlotte Bell, Lata Casciano and Karima Penman.