- Newmont (NGT) has entered into a binding agreement to acquire GT Gold (GTT) for C$456 million cash
- Newmont will acquire all outstanding GT Gold shares for C$3.25 each
- The transaction is expected to be completed in the second quarter of 2021
- Newmont is the world’s leading gold company and producer of copper, silver, zinc and lead
- GT Gold is engaged in advancing its 47,500 hectare Tatogga property in British Columbia’s Golden Triangle
- Newmont (NGT) is up 2.15 per cent and is currently trading at C$74.04 per share
- GT Gold (GTT) is up 58.96 per cent and is currently trading at C$3.195 per share
Newmont (NGT) has entered into a binding agreement to acquire GT Gold (GTT) for C$456 million cash.
The company will acquire all outstanding GT Gold shares for C$3.25 each.
The transaction price represents a premium of 38% to the 20-day volume-weighted average price of GT Gold’s shares on the TSX Venture Exchange on March 9, 2021.
Ashwath Mehra, Executive Chair of GT Gold, stated,
“The transaction is a testament to the years of diligent, professional work by the entire GT Gold team. 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.”
The transaction is expected to be completed in the second quarter of 2021.
GT Gold’s board of directors unanimously approved the transaction and recommends that GT Gold shareholders vote in favour of it.
BMO Capital Markets, Maxit Capital and Rothschild & Co have also provided an opinion to GT Gold stating that the transaction is fair to GT Gold shareholders.
GT Gold shareholders can participate in and vote at a special meeting to consider the transaction. The company will provide details in an upcoming management information circular.
The arrangement includes a termination fee of C$12.65 million, payable by GT Gold, if the agreement is terminated in connection with GT Gold pursuing a superior proposal.
GT Gold is engaged in advancing its wholly-owned, 47,500 hectare Tatogga property located in British Columbia’s Golden Triangle.
Newmont is the world’s leading gold company and producer of copper, silver, zinc and lead. The company’s world-class portfolio of assets, prospects and talent is anchored in favorable mining jurisdictions in North America, South America, Australia and Africa.
Newmont (NGT) is up 2.15 per cent and is currently trading at C$74.04 per share as of 11:35 am EST.
GT Gold (GTT) is up 58.96 per cent and is currently trading at C$3.195 per share as of 11:21 am EST.
