CAPITAL MARKETS

Gold M&A action prompts big moves on TSXV

The anticipated acceleration in gold merger and acquisition activity is underway and has prompted big moves on the TSX Venture Exchange.

Staff reporter
 Newmont is acquiring British Columbia-focused explorer GT Gold

Newmont is acquiring British Columbia-focused explorer GT Gold

GT Gold (TSXV: GTT) reached an all-time high yesterday, closing up 59.7% to C$3.21 on news of Newmont's all-cash acquisition at $3.25 per share, a 38% premium to GT's 20-day VWAP.

GT put the total equity value of the transaction at $456 million on a fully diluted basis, while Newmont put the cash consideration at $393 million.

Interestingly Newmont, which already held about 15% of the explorer focused on its Tatogga project in British Columbia's Golden Triangle, was at pains to point out it acknowledged Tahltan consent was necessary to advance the project.

In a joint statement, Tahltan Central Government (TCG) president Chad Norman Day said TCG looked forward to working with Newmont "in a respectful, meaningful and mutually beneficial way".

Separately, Discovery Harbour Resources (TSXV: DHR) jumped a similar amount, closing up 55.5% to 7c on news Australian gold major Newcrest Mining could pay up to US$31.5 million and complete a PEA to earn 75% of its Fortuity 89 early-stage project in Nevada.

Exploration Insights's Joe Mazumdar had told Mining Journal in February gold M&A was set to take off, agreeing the industry had entered a new M&A cycle. 

The developments come as the gold price is a little higher than this point yesterday, around $1,724 an ounce on the spot market.

Finally, market futures were mostly positive and copper rose almost 1% on the London Metal Exchange amid news of potential strike action looming in Chile.

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