Gold M&A activity continues to flourish, with Minera Alamos (TSXV:MAI,OTCQX:MAIFF) announcing plans on Monday (October 28) to acquire Sabre Gold Mines (ASX:SBR,OTCQB:SGLDF).
The transaction will see Minera Alamos gain ownership of Sabre’s Copperstone gold project in Arizona, adding an estimated 150,000 ounces of annual gold production to the company’s portfolio.
Minera Alamos will issue roughly 76.5 million shares to fulfil the deal, valuing Sabre shares at a 0.693 to one exchange rate. Sabre will also settle its debts by issuing shares to creditors at a 15 percent discount.
Minera Alamos shareholders will hold 86 percent of the merged entity, while Sabre shareholders will hold 14 percent.
In a press release, Darren Koningen, CEO of Minera Alamos, highlighted Copperstone’s advanced permitting and existing infrastructure, saying they are well suited to the company’s growth strategy.
“We are also in discussions with lenders in connection with potentially expanding existing finance facilities to accommodate the development of both Copperstone as well as our Cerro de Oro project in Mexico, which is awaiting permit approvals,” he added, pointing to the complementary nature of the companies’ assets.
Global gold M&A heats up in October
October has brought a slew of gold M&A activity in various parts of the world.
On October 25, Horizon Minerals (ASX:HRZ) and Poseidon Nickel (ASX:POS,OTC Pink:PSDNF) announced plans to establish a mid-tier gold producer centered on the Kalgoorlie-Coolgardie region in Western Australia.
Through a scheme implementation deed, Horizon will acquire all of Poseidon’s shares, consolidating Horizon’s gold assets with Poseidon’s Black Swan processing infrastructure. The new entity aims to streamline production and resource integration in the area, a move that aligns with industry expectations for more regional consolidation.
Also this month, Aurum Resources (ASX:AUE) and Mako Gold (ASX:MKG) announced a deal to unite their flagship Napié and Boundiali gold projects in Côte d’Ivoire through off-market takeover bids.
The new company, with an anticipated market cap of AU$90 million and AU$20 million in cash, will focus on advancing West African projects to bolster regional gold exploration and development.
In Canada, NexGold Mining (TSXV:NEXG,OTCQX:NXGCF) and Signal Gold (TSX:SGNL,OTCQB:SGNLF) said on October 10 that they plan to merge to create a near-term gold producer focused on Canadian assets.
The merger will combine NexGold’s Goliath gold complex in Ontario with Signal’s Goldboro project in Nova Scotia, bringing together approximately 4.7 million ounces of measured and indicated gold resources, and an additional 1.3 million ounces in inferred resources. The new entity aims to produce over 200,000 ounces of gold per year.
In a more recent transaction, Aura Minerals (TSX:ORA,OTCQX:ORAAF) announced a US$74.3 million acquisition of Bluestone Resources (TSXV:BSR,OTCQB:BBSRF), including Bluestone’s Cerro Blanco project in Guatemala.
Cerro Blanco, a high-grade deposit located in Jutiapa, is expected to become a flagship asset with an estimated 14 year mine life and peak production projected at 347,000 ounces of gold per year.
More M&A to come in the gold sector?
Heading into the end of 2024, will the high level of deals in the gold space continue?
‘I would say this is probably the strongest M&A window we’ve seen in well over a decade,’ he added, pointing to numerous billion-dollar transactions, as well as smaller-scale tie ups. In his view, it isn’t over yet.
‘I think this has been a tremendously active window, and I would actually argue there is more to come,’ Geiger said, noting that talks initiated at the Precious Metals Summit in Beaver Creek, Colorado, probably have yet to close.
He anticipates more activity in the junior royalty company space moving forward.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.