M&A Activity Heats Up in the Gold Sector
April 13, 2023 at 10:02 AM EDT
There are several reasons to be optimistic about the gold market including the $40 billion spent on mergers and acquisitions in the sector so far this year. Several factors are pushing gold prices close to $2,000 per ounce and it has when the world’s largest gold miner, Newmont Corporation (TSX:NGT) (NYSE:NEM) made a US$17 billion bid for rival Newcrest Mining, it sparked hope for a new wave of consolidation in the mining sector amid rising gold prices. However, Newmont’s bid is just one of many major deals hitting the space as producers look to replace depleting supplies at their current operations and many deals are aimed at Canadian projects. Agnico Eagle Mines (TSX:AEM) (NYSE:AEM) and Pan American Silver recently closed the US$4.8 billion acquisition of Yamana Gold (TSX:YRI) (NYSE:AUY), gaining 100% ownership of the Canadian Malartic mine, Canada’s largest open pit and one of biggest gold mines in North America. B2Gold Corp. (TSX:BTO) (NYSE-A:BTG) is acquiring Sabina Gold & Silver and its gold-mining project in Canada for US$800 million. Another company positioned within two prolific mining regions in Canada is Fury Gold Mines (TSX:FURY) (NYSE-A:FURY), a well-capitalized high-grade gold exploration business with projects in Quebec’s James Bay Region and Nunavut’s Kitikmeot District.
Fury Gold Mines (TSX:FURY) (NYSE-A:FURY) is focused on developing its 100% owned flagship Eau Claire project located in the Eeyou Istchee Territory in the James Bay region of Quebec, the wholly owned 35,000 hectare Lac Clarkie project to the east of Eau Claire project and its Éléonore South JV project with Newmont, a large-scale high-grade untested gold-in-till anomaly in James Bay with “a tremendous amount of exploration upside.” The company also holds 23.5% (59.5 million common shares) of Dolly Varden Silver.
On April 13, Fury announced the start of its 2023 drill program at Eau Claire, which will include 10,000-15,000 meters (m) of drilling focused on the Western Hinge, Gap Zone, and North Limb targets. The 2023 drill program will be focused on the Western Hinge Target initially to continue to expand the Eau Claire high-grade gold deposit building on the success of the 2021 and 2022 drill programs. The company plans to commence drilling at the Percival Prospect later in Q2 2023.
Fury’s updated geological interpretation of the resource at Eau Claire and its focus on the fold geometry at the Hinge Target has resulted in a 25% increase to the mineralized footprint. The mineralized system remains open in every direction and returned intercepts of 4m of 5.75 grams per tonne (g/t) gold, 1m of 21.4 g/t gold, 3.5m of 5.86 g/t gold and 1.5m of 22.77 g/t gold. The 2023 exploration plans at the Hinge Target will focus on continued expansion of the mineralization footprint to the west and updip.
Earlier this year, Fury also provided an update on targeting at its 100% owned Lac Clarkie project in Quebec’s James Bay region’s Eeyou Istchee Territories. Fury identified eight gold anomalies after completing a B-horizon soil survey investigation. Six of the targets are in the Cannard Deformation Zone, which has several gold occurrences over its 100-kilometer mapped range, including Fury’s Eau Claire Deposit and the Percival Prospect.
Fury recently completed a private placement for C$8.75 million in cash, dramatically increasing the company’s treasury to C$16.2 million.
Miners Are Pursuing Strategic Deals and M&A
Newmont Corporation (TSX:NGT) (NYSE:NEM) sold its common shares in Triple Flag Precious Metal Corp. on the open market for a total of $179 million after taxes. By selling Triple Flag’s shares, Newmont can streamline and improve its stock portfolio while getting cash at a fair price. With the completion of the Goldcorp acquisition in 2019, Newmont has earned more than $2 billion in cash from the sale of non-core assets as part of its goal to maximize value for shareholders and other stakeholders. These profits bolster Newmont‘s investment-grade balance sheet, allowing the company to maintain a flexible financial position across the commodity price cycle while keeping a world-class portfolio of long-life, sustainably managed assets located in top-tier countries.
Agnico Eagle Mines (TSX:AEM) (NYSE:AEM) successfully completed the previously announced plan of arrangement, under which Agnico Eagle acquired certain subsidiaries and partnerships holding Yamana Gold Inc.’s interests in its Canadian assets, including the Canadian Malartic mine. Pan American Silver Corp. has acquired all of Yamana’s issued and outstanding common shares as part of the Arrangement. After the conclusion of the Arrangement, the Company currently owns 100% of the Canadian Malartic mine, 100% of the Wasamac project in Quebec’s Abitibi area, and several other exploratory sites in Ontario and Manitoba.
Yamana Gold (TSX:YRI (NYSE:AUY) and Pan American Silver Corp. announced on March 31 that Pan American had completed its previously announced acquisition of all of Yamana’s issued and outstanding common shares, following Yamana’s sale of its Canadian assets, including certain subsidiaries and partnerships holding Yamana‘s interests in the Canadian Malartic mine, to Agnico Eagle Mines via a plan of arrangement under the Canada Business Corporations Act. The Arrangement expands Pan American’s portfolio by adding four producing mines: the Jacobina mining complex in Brazil, the El Peón and Minera Florida mines in Chile, and the Cerro Moro mine in Argentina. It also includes Argentina’s MARA development project.
B2Gold Corp. (TSX:BTO) (NYSE MKT:BTG) and Sabina Gold & Silver Corp. announced on February 13 the signing of a final agreement under which B2Gold has agreed to acquire all of Sabina’s issued and existing shares. B2Gold will acquire Sabina’s 100% owned Back River Gold District in Nunavut, Canada, as a result of the transaction. The Back River Gold District is made up of five gold claim blocks that stretch for 80 kilometers. Goose, the district’s most advanced project, is completely approved, construction ready, and has been de-risked with considerable infrastructure already in place. B2Gold has the northern construction skills and experience to complete the fully permitted Goose project, as well as the financial means to develop the massive gold resource endowment at the Back River Gold Area into a big, long-life mining complex.
Fury Gold Mines’ Board of Directors recently appointed Brian Christie as an Independent Director. Christie worked as the Vice President of Investor Relations at Agnico Eagle for over 9 years and is now a Senior Advisor, Investment Relations at the company.
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This article is issued on behalf of Fury Gold Mines Limited (“Fury”). The article is a paid communication of Fury which is solely responsible for all factual matters about Fury contained in this article. David Rivard, P. Geo., Fury’s Exploration Manager is the qualified person who has reviewed the technical contents of this article in relation to all Quebec projects. Bryan Atkinson P.Geol., Fury’s SVP of Exploration is the qualified person who has reviewed the technical contents of this article in relation to Committee Bay. Market Jar Media Inc. has or expects to receive from Fury’s digital marketing agency (Native Ads Inc.) sixty-eight thousand and four hundred Canadian dollars in connection with the dissemination of this article. The owners and management of Native Ads and/or Market Jar do not currently own securities of Fury butmay acquire or dispose of securities in Fury from time to time without notice or restriction. Market Jar has not compensated the author of the article nor is Market Jar responsible for its contents. By opening this page, each reader accepts and agrees to Market Jar Media Inc.’s terms of us and full legal disclaimer as set forth here. This article is not investment advice and persons interested in learning about Fury and the risks and challenges of its business should review Fury’s continuous disclosure record found at www.sedar.com.Read more investing news on PressReach.com.Subscribe to the PressReach RSS feeds: