Gold Deals Ramp Up in April
Signs of more M&A to come as 2025 progresses
April was another busy month in terms of deals in the global gold space.
Equinox Gold Corp (TSX: EQX) and Calibre Mining Corp (TSX: CXB) rejigged the terms of their previously announced merger with the aim of winning shareholder approval at meetings to be held today (May 1).
Calibre shareholders are set to receive 0.35 of an Equinox share for each Calibre share held, up from 0.31 previously.
Calibre shareholders will own 39% of the enlarged Equinox, up from 35% previously.
On Monday, Alkane Resources (ASX: ALK) and Mandalay Resources Corp (TSX: MND) announced a merger of equals which it hopes will lead to increased scale and index inclusion.
Alkane will acquire Mandalay under a plan of arrangement with Mandalay shareholders to receive 7.875 shares in Alkane for each share held.
The deal is expected to create a A$1 billion company with combined forecast production of 160,000 gold equivalent ounces from Alkane’s Tomingley gold mine in New South Wales, and Mandalay’s Costerfield gold-antimony mine in Victoria and Björkdal gold mine in Sweden, rising to 180,000oz next year.
The enlarged company, to be based in Perth, will be led by Alkane boss Nic Earner and chaired by outgoing Barrick Gold Corporation director Andy Quinn, with Mandalay’s Brad Mills, Frazer Bourchier and Dominic Duffy and Alkane’s Ian Gandel to round out the board.
Lumina Gold Corp (TSXV: LUM), owner of the Cangrejos gold project in Ecuador, agreed to a C$581 million cash takeover by China’s CMOC Group (HK: 03993).
The cash offer price of C$1.27 per share represents a 71% premium to Lumina’s 20-day volume weighted average trading price and a 41% premium to Lumina’s closing price the day before the deal was announced.
Wesdome Gold Mines (TSX: WDO) will acquire Angus Gold Inc (TSXV: GUS) for cash and scrip to quadruple its Eagle River land package.
Wesdome already owns 10.4% of Angus and will pay C62c and issue 0.0096 of a share for each Angus share held, equating to a 59% premium to Angus’ 20-day VWAP.
In the royalties space, Triple Flag Precious Metals Corp (TSX/NYSE: TFPM) announced it would acquire Orogen Royalties Inc (TSXV: OGN) OTCQX: OGNRF) for C$421 million in cash and shares.
The transaction gives Triple Flag a 1% net smelter return royalty on AngloGold Ashanti’s Expanded Silicon project in Nevada.
Assets other than the Expanded Silicon royalty will be spun out into a new company, which Orogen shareholders will receive shares in.
Asset-level deals increasing
The big asset deal of the month was Barrick Gold Corporation’s (TSX: ABX) sale of its 50% stake in the large undeveloped Donlin gold project in Alaska to affiliates of Paulson Advisers LLC and NOVAGOLD Resources Inc (TSX:NG) for US$1 billion in cash.
The deal will give Paulson a 40% stake in the project and increase NOVAGOLD’s interest from 50% to 60%.
NOVAGOLD’s US$200 million portion of the acquisition is being funded via a US$170 million placement to Paulson, The Electrum Group and Kopernik Global Investors, and existing cash.
Barrick has also granted NOVAGOLD an option to purchase the outstanding debt owed to Barrick in connection with Donlin for US$90 million if purchased prior to closing, or for US$100 million if purchased within 18 months.
New Gold Inc (TSX: NGD) agreed to acquire the remaining 19.9% free cashflow interest in its New Afton mine in Canada that it didn’t already own.
Ontario Teachers' Pension Plan’s interest in New Afton will be fully eliminated in exchange for a cash payment of US$300 million from New Gold, funded by cash on hand, borrowings from its existing revolving credit facility and a US$100 million gold prepayment financing.
Fortuna Mining Corp (TSX: FVI) agreed to sell its Yaramoko mine and other permits in Burkina Faso to private Mauritius company Soleil Resources International for US$130 million.
Fortuna also completed the sale of its San Jose mine in Mexico to private Peruvian company JRC Ingeniería y Construcción in a deal worth up to US$16 million.
On the final day of the month, AngloGold Ashanti (NYSE: AU) agreed to sell its interests in the Doropo and Archean-Birimian projects in Côte d’Ivoire to Resolute Mining (ASX/LSE: RSG) for up to US$175 million in staged payments.
Resolute believes the development of Doropo, which AngloGold acquired through its 2024 takeover of Centamin, will increase its annual gold production to more than 500,000oz.
More deals brewing?
In late March, Gold Fields (JSE: GFI) revealed it had sent its Gruyere joint venture partner Gold Road Resources (ASX: GOR) a takeover proposal.
On a conference call on Monday, Gold Road managing director Duncan Gibbs reiterated that the proposal was opportunistically timed.
“It arrived just after or in the midst of production downgrades, which clearly our joint venture partner knew about, and before the market started to understand the underground potential [of Gruyere],” he said.
“I think now shareholders are a lot better informed. We certainly do have some further news flow to put out around our exploration activities that are playing out around Yamarna in terms of the proposal from Gold Fields.
“And our view is these things are always best dealt with behind closed doors and it's really for Gold Fields to re-engage if they wish to.”
Amid a production downgrade and hedge book restructure, Bellevue Gold (ASX: BGL) revealed it had received “unsolicited approaches relating to a potential control transaction”.
The company has appointed advisors to assist with a strategic review, which will consider initiatives aimed at improving the performance, consistency and cashflow of its Bellevue gold operation in Western Australia, as well as any other options that may deliver shareholder value.
Earlier this week, fellow WA gold miner Regis Resources (ASX: RRL) told analysts it was looking for opportunities given its McPhillamys gold project in NSW has been put on hold following a government decision last year.
“Quite frankly, what we’d like to drive to is to keep growing our business, both at Duketon, to secure steady state production from four, maybe five underground mines, Tropicana keeps doing what it’s doing, and we find inorganic opportunities that increase our cashflow capacity, and ultimately, we use that cashflow capacity to build McPhillamys when we’re ready,” CEO Jim Beyer said.
Regis has been linked to the Ravenswood gold mine in Queensland, which was put up for sale by owner EMR Capital late last year.