Mining Minutes
Alio Gold Agrees To Acquire Rye Patch Gold
Alio Gold Inc. (TSX: ALO; NYSE AMERICAN: ALO) will acquire Nevada-based producer Rye Patch Gold Corp. (TSXV: RPM) under an agreement announced Monday. Each common share of Rye Patch will be exchanged for 0.48 share of Alio Gold, with the offer implying C$1.57 per Rye Patch share, a 35% premium to Rye Patch shareholders, based on the 20-day volume-weighted average trading price of Alio Gold shares on the TSX and Rye Patch shares on the TSXV for the period ending March 16, the companies report. The offer values Rye Patch at C$128 million. The transaction is expected to close around May 25, officials say, adding that existing Alio Gold and Rye Patch shareholders will own approximately 53% and 47% of the combined company, respectively. “This transaction is consistent with our strategy to create a leading mid-tier precious metals company,” says Greg McCunn, chief executive officer of Alio Gold. The website of Rye Patch reports that the flagship Florida Canyon Mine produced 10,470 ounces of gold and 5,447 ounces of silver in the fourth quarter. The deal will require approval by two-thirds of Rye Patch shareholders.
By Allen Sykora of Kitco News; asykora@kitco.com
First Majestic Silver Renews Share-Repurchase Program
Monday March 19, 2018 09:08
First Majestic Silver Corp. says its board of directors has approved the extension of its share-repurchase program for the next 12 months. The company proposes repurchasing up to 8,286,401 common shares, which would 5% of the 165,728,029 outstanding shares as of March 12. The company says it repurchased 230,000 shares for cancellation for a volume-weighted average price of C$7 under its prior normal course issuer bid, which began on March 21, 2017 and expires on Tuesday.
