QMX Gold To Be Acquired By Eldorado Gold In $132 Million Transaction

Consolidation within the mining sector continues this morning, with the announcement that Eldorado Gold (TSX: ELD) will be acquiring that of QMX Gold Corp (TSXV: QMX) in a friendly transaction. The total transaction is valued at $132 million, and is to take place in the form of both cash and shares.

Under the terms of the transaction, QMX shareholders are to receive $0.075 in cash and 0.01523 of an Eldorado common share for each share of QMX held, resulting in total consideration of $0.30 per share, a 39.5% premium to yesterdays closing price of QMX on the venture. Eldorado previously owned a 17% stake in the company, which it acquired in December 2019 at $0.06 per share.

Eldorado has justified the transaction by indicating it will increase the firms footprint in the Abitibi region by 550%, while adding a pipeline of organic growth opportunities. The benefit to QMX shareholders meanwhile is the premium being placed on the company.

The transaction is subject to the approval of QMX shareholders, with a meeting slated to occur in March 2021, where the company will be required to achieve at least 66 2/3% approval from stakeholders. Eldorado sharehodlers are not required to approve of the transaction.

The proposed transaction is anticipated to close in late March or early April 2021.

QMX Gold Corp last traded at $0.215 on the TSX Venture.


Information for this briefing was found via Sedar and the companies mentioned above. The author has no securities or affiliations related to these organizations. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

Giant Mining Encounters Native Copper As Hole MHB-34 Hits 563 Metres Depth

Verses Hits Commercialization Stage With Genius AI Platform

Related News

Great Bear Updates With More Great Results

Yesterday Great Bear Resources (TSXV: GBR) reported results from their ongoing $21 million exploration program...

Tuesday, May 5, 2020, 08:45:09 AM

Trillium Gold Closes $5.0 Million Financing

Trillium Gold Mines (TSX: TGM) this morning announced the closing of its previously announced brokered...

Monday, June 28, 2021, 11:01:29 AM

Russia Dramatically Increases Gold Purchases As Oil and Gas Revenue Surges

The Russian Finance Ministry has announced a substantial increase in its gold purchases starting September...

Saturday, September 7, 2024, 07:33:00 AM

Xander Resources Provides Exploration Update, Preps For Drilling

Xander Resources (TSXV: XND) offered up a market update on its ongoing exploration this morning,...

Wednesday, September 30, 2020, 08:57:29 AM

Lundin Mining Slashes Candelaria Production Guidance

Lundin Mining Corporation (TSX: LUN) this morning reported that production guidance for 2021 at its...

Monday, June 21, 2021, 07:46:27 AM