“Gold Road continues to evaluate strategic opportunities and will only pursue acquisitions if it is in the best interests of its shareholders,” managing director and chief executive Duncan Gibbs said in the statement.
According to The Australian, Orion is seeking a A$1 billion-plus (about $648 million) valuation for Greenstone and Gold Road Resources. Its primary asset is a non-operating 50% in the Gruyere gold mine, and it may need to raise funds to pay for the potential stake acquisition.
Gold Road’s shares dropped 6.6% to A$1.70 by the end of Monday’s trading, surpassing the losses seen by other gold companies. This movement in the stock price suggests that investors are, in fact, expecting a fundraising effort.
Gold Road had A$143.8 million in cash and A$465 million in investments by the end of 2023, with a significant portion represented by its 19.9% stake in gold company De Grey Mining (ASX: DEG).
Shares in De Grey…
