The previously announced merger between GCM Mining (TSX: GCM) and Aris Gold (TSX: ARIS) has been completed. The resulting entity renamed to Aris Mining, and is now to be helmed by Neil Woodyer, with Ian Telfer operating in the role of Chair of the Board.
With the transaction now complete, the firm has two mining operations, the Marmato Mine and Segovia Operations, as well as two advanced development projects and a 20% stake in the Soto Norte joint venture. Collectively, the firm produced 230,000 ounces of gold last year.
The company as a whole also has proven and probably reserves of 3.8 million gold ounces, an estimated 18.3 million measured and indicated gold ounces, and 7.7 million inferred gold ounces.
The firms balance sheet meanwhile is said to have $352 million in cash, and $260 million of available funds that are to be used for further growth.
Originally announced in July, the merger of the two firms was not viewed all that positively, with no premium ascribed to Aris Gold in the transaction, while at the same time GCM revealed it would be ending its dividend policy. Aris Gold shareholders under the transaction received 0.5 common shares of GCM for each share held.
“Over the past 18 months, our team has completed three transactions that have resulted in the creation of Aris Mining. We have an attractive mix of production, cash flow and near-term growth projects, all of which are supported by sizable mineral reserves or resources and strong financial, technical, and operating teams,” commented CEO Neil Woodyer on the transaction being completed.
The combined entity is currently trading on the TSX under the symbol “GCM”, however it is expected to transition to the symbol “ARIS” as of September 28. The combined firm has a total of 136.1 million shares outstanding.
Aris Mining last traded at $3.19 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.
