Gran Colombia offers $315M in friendly, all-share offer for Gold X northernminer.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from northernminer.com Daily Mail and Mail on Sunday newspapers.
Gran Colombia offers $252m in friendly, all-share offer for Gold X
Potential pit area at Toroparu gold project in Guyana. Image from Gold X.
Gran Colombia Gold (TSX: GCM) is acquiring Gold X Mining (TSXV: GLDX) in an all-share deal valued at C$315 million ($252.5 million), after a three-way merger proposal that included Guyana Goldfields was scuttled last year by China’s Zijin Mining.
The combination of assets – Gran Colombia’s producing Segovia operations and Gold X’s Toroparu advanced gold project in Guyana – would create a new “Latin American-focused growth platform.”
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Gran Colombia Gold (TSX: GCM) is acquiring
Gold X Mining (TSXV: GLDX) in an all-share deal valued at $315 million, after a
three-way merger proposal that included Guyana Goldfields was scuttled last year by
The combination of assets – Gran Colombia’s producing Segovia operations and Gold X’s Toroparu advanced gold project in Guyana – would create a new “Latin American-focused growth platform.”
Highlights of the transaction include an enhanced balance sheet and access to capital (the combined company would have $100 million in cash), and greater market visibility and interest. Both Segovia and Toroparu also have significant growth and exploration potential.
Gran Colombia already owns an 18% stake in Gold X. The offer implies a 39% premium based on the closing price of Gold X shares on Mar. 12.