Aris Gold and GCM Mining to create ‘leading Americas gold producer’ with merger

TSX-listed miners Aris Gold Corporation and GCM Mining Corp have announced a definitive agreement for the combination of the two companies that will ‘create a leading Americas gold producer’, according to a statement released by Aris.

Under the agreement, GCM will acquire all the outstanding Aris shares it doesn’t already hold, with the resulting entity to be named Aris Gold Corporation. The merged outfit will be led by Aris’ Ian Telfer as chair and Neil Woodyer as CEO and director.

The combination will create a large gold company with multiple Tier 1 assets, Telfer said in today’s news release. The groundwork for the merger was laid in April, when Aris became operator of the Soto Norte joint venture underground gold project in Colombia.

Other assets in the combined 3.8 million ounces gold reserve portfolio include the Segovia Operations and Marmato Mine in Colombia, the Toroparu project in Guyana and the Juby project in Ontario, Canada.

“We are building a gold mining business with scale, cash flow, a strong financial position with US$397 million of cash and $260 million of additional committed funding, and a high-quality growth pipeline,” said Woodyer.

“Our teams are well known to each other, and together we will optimise the delivery of the growth projects to unlock shareholder value,” he added.

On closing, GCM shareholders and Aris shareholders (taking into consideration the 44.3% of Aris Gold currently held by GCM) are expected to own, on a diluted in-the-money basis, approximately 74% and 26% of the combined group, respectively.

Approval for the deal is still required by a majority of Aris and GCM shareholders and is subject to TSX and Colombian regulatory approvals.