Gold X To Be Acquired For $315 Million By Gran Colombia In All-Stock Transaction
Gran Colombia Gold (TSX: GCM) this morning announced that it has entered into an arrangement to acquire the remaining portion of Gold X Mining (TSXV: GLDX) that it doesn’t currently own. The value of the transaction is currently pegged at $315 million.
The transaction will see Gran Colombia acquire the remaining portion of the company. Prior to the announcement, the firm held an 18% stake in the junior firm. Shareholders of Gold X are set to receive 0.6948 of a Gran Colombia share for each Gold X share held, implying consideration of $4.10 per share, representing a 39% premium to the closing price of the equity on Friday.
Completion of the transaction is expected to allow for the “creation of a new, Latin American-focused growth platform,” with the combined entity having operations and assets in Colombia and Guyana. The combined firm is expected to have significant mineral reserves as well as US$100 million in cash on hand and better access to equity markets.
Under the terms of the arrangement, approval of 66 2/3% of Gold X shareholders is required, with the special meeting of shareholders currently anticipated to be held in May 2021. A termination fee of $5.5 million has also been put into place.
Gold X Mining last traded at $2.94 on the TSX Venture.
Information for this briefing was found via Sedar and Gran Colombia Gold Corp. 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.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
