Gran Colombia Gold (TSX: GCM) this morning walked from its attempted acquisition of both Gold X Corp (TSXV: GLDX) and Guyana Goldfields (TSX: GUY) with little fanfare. The company elected to not place a counter bid for the transaction after Silvercorp Metals (TSX: SVM) heavily amended the terms of their proposed Guyana acquisition transaction.
Under the initial arrangement, Gran Colombia was looking to roll-up the assets of Gold X and Guyana to essentially establish a large gold operation within Latin America. The proposed merger between all three parties however was contingent on each transaction taking place, as well as on Guyana walking from its proposed merger with Silvercorp Metals, which at the time, was based on shareholders receiving approximately $0.60 per share.
With an offer in the neighbourhood of $0.90 per share for Guyana, Gran Colombia felt that the transaction would be far superior to what was on the table from Silvercorp. The executives at Guyana felt otherwise, and walked due to no cash component being involved. Silvercorp then subsequently upped the ante with an amended agreement for Guyana shareholders to receive $1.30 per share, more than double the original offer.
With the Guyana transaction not occurring, Gran Colombia this morning then announced that it would not be pursuing the transaction, and that they had agreed with Gold X Corp to walk from that proposed merger as well.
Gran Colombia Gold last traded at $7.15 a share.
Information for this briefing was found via Sedar, Silvercorp Metals, Gran Colombia Gold, Gold X Corp and Guyana Goldfields. 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.
