11 Mar Newmont moves to acquire Canadian explorer GT Gold in $312 million deal
The world’s largest gold miner Newmont has announced it will acquire the shares it doesn’t already own in Canadian explorer GT Gold Corp, in a cash deal valued at around US$312 million (C$393 million).
Newmont will buy the remaining 85.1% of common stock in GT Gold for a price of C$3.25 per share, which represents a 38% premium to the 20-day volume-weighted average price of GT Gold’s shares on the TSX as of March 9.
GT Gold’s primary asset is the 100%-owned Tatogga gold-copper project, located in the Traditional Territory of the Tahltan Nation, about 14 km West of the Red Chris copper-gold mine in Northwest British Columbia.
“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,” said Newmont’s president and CEO Tom Palmer.
“We understand and acknowledge that 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 (BC) to ensure a shared path forward,” Palmer added.
The acquisition of the Tatogga project adds to Newmont’s existing interest in the prolific golden triangle of BC, which includes a 50% ownership in the Galore Creek project, alongside Teck Resources.