Canadian gold group sells for $393M

March 25, 2021

Newmont Corporation and GT Gold have entered into a binding agreement in which Newmont will acquire the remaining common shares of the Canadian company. Photo by GT Gold[1]
Newmont Corporation and GT Gold have entered into a binding agreement in which Newmont will acquire the remaining common shares of the Canadian company.
Photo by GT Gold

International mining group Newmont Corporation[2] is set to acquire all shares of Canada’s GT Gold[3] for cash consideration of approximately $393 million (US$311 million).

The two groups have entered into a binding agreement in which Newmont will acquire the remaining 85.1 per cent of common shares of GT Gold it does not already own. The shares will be purchased at a price of $3.25, Newmont reports.

GT Gold’s flagship asset is the wholly owned, 47,500-ha Tatogga property, located in the Traditional Territory of the Tahltan Nation, part of the ‘highly prospective’ Golden Triangle region of British Columbia, GT Gold says.

“Newmont recognizes our relationships with Indigenous, First Nations, and host communities are critical to the way we operate,” says Newmont’s president and CEO, Tom Palmer. “We are committed to continue building a constructive and respectful relationship with the Tahltan Nation, including with the community of Iskut, which is near the project, in anticipation of exploring this highly prospective area. We understand and acknowledge Tahltan consent is necessary for advancing the Tatogga project and we will partner with the Tahltan Nation at all levels, and with the Government of British Columbia to ensure a shared path forward.”

“My fellow directors and I would like to express our thanks and appreciation to all who have been involved in successfully advancing the Tatogga project to this stage from discovery to sale in just over four years,” adds Ashwath Mehra, executive chair of GT Gold.

The Tatogga project has the potential to contribute significant gold and copper annual production at all-in sustaining costs over a long mine life, Newmont says.

The transaction is expected to close in the second quarter of 2021, subject to normal closing conditions.

Endnotes:
  1. [Image]: https://www.jewellerybusiness.com/wp-content/uploads/2021/03/SA_Newmont.jpg
  2. Newmont Corporation: https://newmont.com/
  3. GT Gold: https://www.gtgoldcorp.ca/

Source URL: https://www.jewellerybusiness.com/news/canadian-gold-group-sells-for-393m/