Major transactions are finally starting to trickle down to the gold juniors, with Lumina Gold (TSXV: LUM) this morning announcing an arrangement whereby it will be bought out by CMOC Singapore Pte. Ltd.
The transaction will see Lumina acquired for $581 million in an all cash transaction, with shareholders set to receive $1.27 per share. The figure represents a 71% premium to the 20-day volume weighted average price of the equity, and a 41% premium to Friday’s close.
As part of the arrangement, CMOC has secured votes from 52.3% of the issued and outstanding Lumina shares.
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“After advancing the Cangrejos project for over 10-years and taking it from no defined resources to being poised to be one of the largest gold projects globally, the Lumina Group is excited for the transition of the Cangrejos project to CMOC. The Lumina team looks forward to working with CMOC and all existing stakeholders to ensure the successful future development of the project,” commented Marshall Koval, CEO of Lumina on the transaction.
As part of the transaction, Lumina has agreed to conduct a US$20 million convertible debenture financing, which will be fully subscribed to by CMOC.
The transaction remains subject to shareholder approval, alongside regulatory and court approvals. A termination fee of $23.3 million remains in play, payable to CMOC in the event the transaction fails to proceed.
The transaction is expected to close in the third quarter of 2025.
Lumina Gold last traded at $1.17 on the TSX Venture.
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.
