An undated view of the Tartan Lake gold mine project in Manitoba. Credit: Satori Resources.
Canadian miner McEwen (TSX, NYSE: MUX) agreed to buy smaller rival Canadian Gold (TSXV: CGC) to add the mothballed Tartan mine in Manitoba and exploration properties in Ontario and Quebec.
The preliminary deal would see Canadian Gold shareholders receive 0.0225 of a McEwen common share, for an offer price of C$0.35 per Canadian Gold share, according to a statement issued Monday. This represents a 26% premium to the 30-day volume weighted average price of the Canadian Gold shares as of Friday’s market close, McEwen said.
Based on about 209.1 million shares outstanding, the deal values Toronto-based Canadian Gold at about C$73 million ($53 million). No specific timeline for the acquisition’s completion was disclosed.
The proposed deal comes as McEwen – which recently changed its name from McEwen Mining to…
