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MARCH 29—APRIL 11, 2021 / VOL. 107 ISSUE 07 / GLOBAL MINING NEWS · SINCE 1915 / $5.25 / WWW.NORTHERNMINER.COM
Newmont to buy GT Gold M&A
| Cash deal valued at about $393 million
Evolution to acquire Battle North in $343M all-cash deal M&A
| Agreement would combine assets in Red Lake mining district
BY MAGDA GARDNER
A
The Saddle South deposit at GT Gold’s Tatogga project. Inset: Examining drill core. GT GOLD
BY CECILIA JAMASMIE
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MINING.com
ewmont (TSX: NGT; NYSE: NEM), the world’s No. 1 gold miner, is acquiring all the shares it doesn’t already own in Canadian explorer GT Gold (TSXV: GTT) in a cash deal valued at about US$311 million ($393 million). The transaction will see the U.S. mining giant buying the remaining 85.1% of common shares of GT Gold it doesn’t already have for $3.25 per share in cash. The figure represents a 38% premium to the 20-day volume-weighted average price of GT Gold’s shares on the Toronto Stock Exchange as of March 9. GT Gold’s primary asset is the wholly-owned, 47,500 hectare Tatogga gold-copper project, located in the Traditional Territory of the Tahltan Nation, about 14 km west of the Red Chris copper-gold mine. “We are committed to continue building a constructive and respectful relationship with the Tahltan Nation, including with the community of Iskut, which is near the project, in anticipation of exploring this highly prospective area,” Newmont President and CEO Tom Palmer, stated in a news release. “We understand and acknowledge that Tahltan consent is necessary for advancing the Tatogga project and we will partner with the Tahltan Nation at all levels, and with the government of British Columbia to ensure a shared path forward.” The acquisition of the Tatogga project adds to Newmont’s existing interest in the prolific golden triangle of British Columbia through the company’s 50% ownership in the Galore Creek project. The copper-gold project, which
includes the primary Saddle North asset, has the potential to contribute significant gold and copper annual production to Newmont’s overall output, the company said. In addition to the known deposits at Saddle North, there are further exploration opportunities throughout the land package, Newmont said. The Tahltan Nation’s territory spans 95,933 square kilometres, or 11% of B.C. and includes 70% ofo the province’s Golden Triangle, which has a thriving mineral exploration sector. With gold prices bouncing back and a dearth of shovel-ready development projects in the pipeline, experts have said that the industry could see a lot of merger and acquisition (M&A) activity in B.C.’s mining sector, especially in gold. The last 12 months have been fairly busy for mining M&A, with many of the deals involving Vancouverbased companies. Last year New Gold (TSX; NGD; NYSE: NGD) completed the sale of its Blackwater property, south of Prince George, to Artemis Gold (TSXV: ARTG) for US$190 million. In December, Seabridge Gold (TSX: SEA) bought the Snowfield project from Pretium Resources (TSX: PVG) for US$100 million in cash, a 1.5% net smelter return royalty (NSR) related to all production and a US$20 million contingent payment. At the beginning of this year, Eldorado Gold (TSX: ELD; NYSE: EGO) acquired QMX Gold (TSXV: QMX) for US$132 million in a friendly acquisition. Last month, Rick Rule, president and CEO of Sprott US Holdings, said he believes there has been such an underinvestment in new discoveries that B.C. projects in more advanced
stages of development could be prime targets. “The industry is sorely lacking high-quality exploration projects or development projects,” he said. “The consequence of that is, when somebody makes a good discovery, they can be taken at absolutely eyepopping multiples.” The Newmont-GT Gold transaction is expected to close in the second quarter, subject to normal closing conditions. TNM
Canadian Mining Journal
ustralia-based producer Evolution Mining (ASX: EVN) is acquiring Red Lakefocused gold developer Battle North Gold (TSX: BNAU) in a $343 million, $2.65 a share, all-cash deal. The two companies have entered into a definitive arrangement agreement with Evolution agreeing to acquire all of the Battle North shares outstanding. The $343 million cash offer represents a 46% premium to Battle North’s closing share price on March 12 and a 54% premium to the company’s 20-day weighted average price. According to Battle North president and CEO George Ogilvie, the offer from Evolution offers a premium to shareholders with synergies expected from the combination of Battle North’s Bateman and Evolutions’ Red Lake complex in the Ontario mining district. “The all-cash offer is at a significant premium to market and reflects the extraordinary efforts of the Battle North team to create
MINING INTELLIGENCE REVIEWS CAPITAL RAISINGS FOR GOLD PROJECTS / 5
Underground development work at Battle North’s Bateman project. BATTLE NORTH GOLD
value at the Bateman gold project and ultimately deliver an outstanding outcome for Battle North’s shareholders. We believe that there are unique and undeniable merits to combining the Red Lake assets of Battle North and Evolution and this transaction reduces development and execution risk.” The Australian miner made its entry into Canada with the 2019 US$375 million purchase of Newmont’s (TSX: NGT; NYSE: NEM) Red Lake complex, with an additional US$100 million of payments contingent on resource growth. Jake Klein, Evolution’s executive chairman, said that this combinaSee M & A / 8
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