Dundee Precious Metals Acquires Remainder Of INV Metals For $104 Million In Shares

Dundee Precious Metals Inc. (TSX: DPM) announced today the acquisition of all the remaining issued and outstanding shares of INV Metals Inc. (TSX: INV) that the company does not currently hold. Dundee Precious currently owns 35,344,424 INV common shares or approximately a 23.5% stake in the company.

Under the terms of the acquisition, each of the remaining INV common shares will be exchanged for 0.910 of a Dundee Precious common share. This effectively implies a consideration of $0.80 per INV common share, which represents a 63% premium to INV share’s closing price on May 28, 2021.

The acquisition values INV at approximately $132 million, of which 76.5% or $104 million represents the value yet to be acquired by Dundee Precious.

Dundee Precious considered INV’s Loma Larga gold-copper-silver project in its acquisition decision. The company said the project “adds a high-quality, advanced-stage gold project to [its] portfolio.”

In addition to customary and regulatory approvals, the acquisition is also subject to the INV shareholders’ approval. IAMGOLD Corporation (TSX: IMG), which holds a 47% stake in INV, has already expressed support. Adding this to Dundee Precious’s current 23.5% stake, there’s an approximate 70.5% shareholder support expected prior to the shareholder meeting in July 2021. The transaction is expected to close shortly thereafter.

Should the transaction close, the resulting entity will consist of approximately 94.5% and 5.5% of Dundee Precious and INV, respectively.

Dundee Precious Metals Inc. last traded at $8.81 while INV Metals Inc. last traded at $0.49 on the TSX.


Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Why Copper Juniors Could Explode After This Trade War Move | Christian Easterday – Hot Chili

Silver Is Rarer Than Gold, And the Market’s Waking Up | Shawn Khunkhun – Dolly Varden Silver

Gold Will Hit North of $4,000: Who’s Actually Producing? | Shane Williams – West Red Lake

Recommended

ESGold Sees ANT Survey Reveal Vertically Continuous System To 1,200 Metres Depth

First Majestic Produces 7.9 Silver Equivalent Ounces In Q2, Lifts Production Guidance

Related News

Newmont Cuts Management Jobs, Merges Units After Newcrest Deal

Gold miner Newmont Corp (TSX: NGT) has dismissed nearly a dozen managers including one executive...

Sunday, December 15, 2024, 07:42:00 AM

SKRR Exploration Expands Flow Through Placement To $2.2 Million

SKRR Exploration (TSXV: SKRR) quietly announce after the bell last night that it has increased...

Tuesday, October 20, 2020, 02:55:40 PM

Nighthawk Gold Hits 33.25 Metres of 3.89 G/T Gold At Colomac

Nighthawk Gold Corp (TSX: NHK) released further assay results for its ongoing drilling being conducted...

Thursday, August 20, 2020, 09:07:54 AM

Grande Portage Hits 1.78 Metres Of 4.15 G/T Gold In New Vein At Herbert, 18.29 G/T Gold In Goat Vein

Grande Portage Resources (TSXV: GPG) this morning released further results from its 2020 drill program...

Monday, December 14, 2020, 09:01:30 AM

Mike McGlone: Bitcoin Is Replacing Gold – The Daily Dive

On this episode of the Daily Dive, Cassandra sits down with returning guest Mike McGlone,...

Friday, August 20, 2021, 01:30:00 PM