Brio Gold Agrees To Increased Offer from Leagold
Brio Gold Inc. (TSX: BRIO)says it has agreed to an increased offer to be bought in an all-stock deal byLeagold Mining Corp. (TSX: LMC).Leagold announced an intention to make a takeover bid for Brio last month. Thecombined company will be an intermediate gold producer, with four operatingmines and an advanced-stage development project, which are located in Mexicoand Brazil. The merged company is expected to produce 447,500 ounces ofgold in 2018, with potential for over 700,000 by 2020. Under the deal,shareholders of Brio Gold will receive 0.922 of a Leagold common share and 0.4of a Leagold share purchase warrant for each share of Brio Gold held. Theconsideration implies total value of approximately C$2.67 per Brio Gold share,with an implied equity value for Brio Gold of C$314 million. Yamana Gold Inc.,which holds 53.6% of outstanding Brio Gold shares, has entered into a support agreementwith Leagold and has agreed to vote its Brio Gold shares in favor of thetransaction, unless there is a superior offer, Brio said. “We are pleased to have reached a friendlyagreement with the board and management of Brio,” says Neil Woodyer, chiefexecutive officer of Leagold. “While Leagold was highly confident in the futuresuccess of the shareholder supported take-over process, we sought theopportunity to go friendly in order to accelerate the completion of thetransaction by approximately 70 days, providing greater certainty to Brio’semployees and shareholders and allowing us to unlock value for Brioshareholders sooner.” The deal is subject to approval by shareholders of bothcompanies.
By Allen Sykoraof Kitco News; asykora@kitco.com
Dundee Lists4Q Net Loss But Adjusted Profit
Friday February 16, 2018 09:33
DundeePrecious Metals Inc. (TSX: DPM)lists a fourth-quarter net loss from continuing operations of $1.4 million, ora penny per share, an improvement from a net loss of $107.5 million, or 67cents, for the same period in 2016. Excluding special items, adjusted netearnings were $3.4 million, or 2 cents, compared to $5.7 million, or 4 cents,in the corresponding period in 2016. In the fourth quarter, output of goldcontained in concentrate was up by 12% year-on-year to 49,390 ounces and copperproduction increased by 7% to 9.5 million pounds. The higher gold productionwas mainly due to higher-than-anticipated grades and higher recoveries, Dundeesays. Net earnings for the full year were $0.2 million, or nil per share,compared to a net loss of $150 million, or $1, in 2016. For 2017, adjusted netearnings were $16.7 million, or 9 cents, compared to an adjusted net loss of$22.4 million, or 15 cents, in 2016. For the full year, the company produced arecord 197,684 gold ounces that topped guidance. Copper production of 35.8million pounds was in line with guidance. For 2018, Dundee projects 165,000 to195,000 gold ounces and between 33.7 million and 40.4 million pounds of copper.
By Allen Sykoraof Kitco News; asykora@kitco.com
Sandstorm GoldPosts Fourth-Quarter Profit
Friday February 16, 2018 09:33
Sandstorm GoldLtd. (NYSE American: SAND,TSX: SSL)reports fourth-quarter net income of $0.7 million, a turnaround from a $0.02million in the fourth quarter of 2016. Sandstorm lists gold-equivalent ouncessold of 12,032 ounces from October through December, down from 13,245 ounces inthe year-ago period due to a temporary reduction from the Emigrant Springsroyalty. Full-year net income was $10.5 million, compared to $25.3 million in2016. The company listed record gold-equivalent ounces sold of 54,633 ounceslast year, up from 49,731. Based on existing royalties, Sandstorm projectedgold-equivalent production for 2018 to be between 50,000 and 60,000 ounces,rising to some 125,000 ounces per annum in 2022.
By Allen SykoraFor Kitco News
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