Further consolidation is set to take place in the gold sector, with Wesdome Gold (TSX: WDO) this morning announcing it has reached a definitive agreement to acquire Angus Gold (TSXV: GUS).
The transaction will see Angus Gold shareholders receive a 59% premium to the 20-day volume weighted average price of its shares. The premium equates to total consideration of $0.77 per share. Consideration is to be a mix of cash and stock, with Angus shareholders to receive $0.62 in cash and 0.0096 of a Wesdome share for each share of Angus Gold they hold.
The purchase price equates to an enterprise value of approximately $40 million.
Prior to the transaction, Wesdome held 6.3 million common shares of the company, alongside 3.14 million common share purchase warrants, which equated to a 10.4% stake in the explorer. That interest was taken just last year as part of a strategic investment.
The draw here for Wesdome is Angus’ current land holdings, with their Golden Sky project found adjacent to the Eagle River project in Wawa, while also encompassing the Mishi open pit mine. The purchase as a result will lead to the the Eagle River region being consolidated under a single banner into a contiguous 400 square kilometre land package, while establishing a greenfield exploration pipeline for Wesdome.
“This is a highly logical and strategic tuck-in transaction that brings together a contiguous land package between the Eagle River mine and mill, enhancing our ability to unlock value through the drill bit. It reinforces our belief in the geological potential of the Mishibishu Lake greenstone belt, aligns with our focus on regional consolidation, and positions us to deliver sustainable, long-term growth supported by our strong balance sheet and existing infrastructure,” commented Anthea Bath, CEO of Wesdome.
The transaction remains subject to approval from Angus’ shareholders, alongside standard regulatory approvals. Angus has seen its management, who collectively own 28% of the company, enter voting support agreements. New Gold, who owns 8% of the outstanding shares, has agreed to enter a lock-up to tender its shares to Wesdome. Combined with Wesdome’s current ownership in the company, 47% of the shares have been secured in support of the transaction.
The purchase is expected to close in Q2 2025.
Wesdome Gold last traded at $15.65 on the TSX.
Information for this briefing was found via Sedar and the sources 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.
