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Australia’s St. Barbara grabs Canada’s Atlantic Gold for CAD 722 million

Mining News - Published on Thu, 16 May 2019

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Australian gold producer St. Barbara is buying smaller Canadian rival Atlantic Gold Corp for CAD 722 million, in the last of several mergers and acquisitions targeting mostly the gold sector taking place this year. The Melbourne-based miner offered CAD 2.90 a share for Vancouver-based Atlantic Gold, a 39% premium to Tuesday’s close, and will fund the deal from cash reserves and by raising about AUD 490 million in a share sale to existing holders. The bid, already approved by St. Barbara’s investors, would give the company access to Atlantic Gold’s Moose River complex in Nova Scotia, which comprises one producing open-pit (Touquoy) and three others in development (Beaver Dam, Fifteen Mile Stream and Cochrane Hill).

Atlantic Gold’s chairman and chief executive, Steven Dean, said in a separate statement “St Barbara’s offer not only recognizes the value of our current plan for the MRC Mine, but rewards shareholders for the future growth and exploration potential.

The Moose River mine has become a large employer, with 280 full-time workers at the site and an additional 40 to 70 contractors. Many are Nova Scotians who have returned to their home province after working abroad or elsewhere in Canada.

Gold was first discovered in the area in 1866 and in the 1930s an underground mine produced 26,000 ounces of gold, which was largely taken from quartz veins but also from open-slate quarries.

Following the highly publicized multi-billion mergers of Barrick – Randgold and Newmont – Goldcorp, the global gold sector is going through an anticipated wave of consolidation that so far seems to be mostly focused on Canada.

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Posted By : Rabi Wangkhem on Thu, 16 May 2019
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