Another big deal in local mining.
Wesdome Gold Mines has announced a definitive arrangment agreement to acquire all issued and outstanding common shared of Angus Gold for 62 cents cash plus 0.0096 of a Wesdome share - an aggregate value of 77 cents per Angus common share, a 59% premium from Angus' 20-day volume-weighted average price ending Friday.
Wesdome already owns 6.3-million common shares and 3.15-million common share purchase warrants - approximately 10.4% of Angus' basic common shares outstanding, or 14.9% on a partially diluted basis.
President and CEO Anthea Bath calls it "a highly logical and strategic tuck-in transation", which would quadruple Wesdome's Eagle River land package into roughly 400 square kilometres - Angus' land package is located north of the Eagle River Mine, surrounding Wesdome's Mishi Mine - with the expanded footprint hosting multiple targets and mineralization styles, and Wesdome says this underscores its long-term commitment to Eagle River.
While both company's boards have already approved the agreement, it still needs approval from Angus Gold's shareholders - the board is unanimously recommending it.
This comes just over a year after nearby Alamos Gold announced a deal to buyout Alamos Gold - folding its Magino Mine project into the Island Gold Mine, redubbed the Island Gold District - a deal completed last July.