(Kitco News) - GCM Mining (TSX: GCM) and Aris Gold (TSX: ARIS) announced today they have entered into a definitive agreement under which GCM will acquire all the outstanding Aris Gold shares not already held by GCM.
Under the terms of the transaction, all the outstanding Aris Gold shares not held by GCM will be exchanged at a ratio of 0.5 of a common share of GCM for each common share of Aris Gold.
On closing, GCM shareholders and Aris Gold shareholders (taking into consideration the 44.3% of Aris Gold currently held by GCM) are expected to own, on a diluted in-the-money basis, approximately 74% and 26% of the combined group, respectively.
According to a press-release, this transaction creates the top-of-the-class company among junior producers and the largest gold company in Colombia, with diversification in Guyana and Canada.
The combined group will control a substantial total gold reserve of 3.8 Moz and resource base of 18.3 Moz Measured & Indicated and 7.7 Moz Inferred.
The resulting entity will be named Aris Gold Corporation and will be led by Ian Telfer as Chair and Neil Woodyer as CEO and Director.
It is anticipated that both the GCM and Aris Gold shareholder meetings will take place in mid September 2022, and completion of the transaction is expected to occur promptly thereafter.
Ian Telfer, Aris Gold Chair, stated, "The combined group creates a top-in-class company with multiple tier one assets. After Aris Gold became operator of the Soto Norte joint venture, joining forces with GCM became a logical next step. Our increased scale will also broaden our future opportunities to continue building a +1 million ounce producer over the next few years."
|
| Evolution increases gold production in June quarter, says Red Lake mine output up 17% |
GCM Mining is a mid-tier gold producer with a proven track record of mine building and operating in Latin America. In Colombia, the company is the leading high-grade underground gold and silver producer with several mines in operation at its Segovia Operations. In Guyana, the company is advancing its fully funded Toroparu project, one of the largest undeveloped gold/copper projects in the Americas, which is expected to commence production of more than 200,000 ounces of gold annually in 2024.
Aris Gold is a Canadian mining company. In Colombia, Aris Gold operates the 100%-owned Marmato mine, where a modernization and expansion program is under way, and as of April 12, 2022, operates the Soto Norte joint venture, where environmental licensing is advancing to develop a new gold mine. Aris Gold also owns the Juby project, an advanced exploration stage gold project in the Abitibi greenstone belt of Ontario, Canada.
