Consolidation continues in the gold sector, with Paycore Minerals (TSXV: CORE) this morning agreeing to be acquired by i-80 Gold Corp (TSX: IAU) in an all-stock transaction. The transaction will see Paycore shareholders receive a 26% premium from Friday’s close in the transaction.
The transaction will see Paycore shareholders receive 0.68 i-80 shares for each share held, which is valued at $2.16 based on the closing price of the equity on February 24. The figure represents a small premium for Paycore, which on Friday closed at $1.72 and just this month traded as high as $2.15.
The transaction will see i-80 acquire the FAD property, which is found immediately south of i-80’s Ruby Hill Property, in Eureka County, Nevada. The merger will result in the northern portion of the Eureka District being consolidated, bringing the Ruby Hill project to a total size of 14,272 acres, while adding more gold ounces to the project.
The FAD Project has a historic resource of 3.5 million tonnes grading 5.14 g/t gold, 196.46 g/t silver, 8.00% zinc, and 3.80% lead.
“The mineralization of these two properties is indicating a massive carbonate replacement system along the fault corridor between the two properties. The combination of i-80 and Paycore’s deposits is shaping up to be among the highest-grade carbonate replacement deposits (CRD’s) in the world,” commented James Gowans, Chairman of Paycore.
The deal will see Paycore shareholders own 10% of i-80 on a post closing basis. The transaction remains subject to approval by two thirds of Paycore shareholders, while a termination fee of $3.5 million is payable by Paycore is also in play. A special meeting of shareholders is slated to vote on the matter in April 2023.
The transaction currently has approval from Paycore’s largest shareholder, Waterton Nevada Splitter, and Waterton Nevada Splitter II, which owns 25% of the company.
Paycore Minerals last traded at $1.72 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.
