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.