YOUNG MINING PROFESSIONALS SCHOLARSHIPS ANNOUNCED / 6 Geotech_Earlug_2016_Alt2.pdf 1 2016-06-24 4:27:20 PM
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Mining projects push forward / 7 – 16
DELIVERING QUALITY EXPERTISE GLOBALLY ACROSS THE ENTIRE MINING LIFE CYCLE
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NOVEMBER 9—12, 2020 / VOL. 106 ISSUE 23 / GLOBAL MINING NEWS · SINCE 1915 / $5.25 / WWW.NORTHERNMINER.COM
Yamana Gold to acquire Monarch in $152 million deal M&A
| Could signal more acquisition activity in Quebec’s Abitibi region
BY CECILIA JAMASMIE
Y
The London Stock Exchange. ISTOCKIMAGES.COM
Wheaton expands into Europe with LSE debut STREAMING
| Company adds London to its Toronto and New York listings
BY CARL A. WILLIAMS cwilliams@northernminer.com
W
heaton Precious Metals (TSX: WPM; NYSE: WPM; LSE: WPM), one of the world’s largest gold and silver
streaming companies, began trading on the main market of the London Stock Exchange (LSE) on Oct. 28. The Vancouver-based company will maintain its primary listing on the Toronto Stock Exchange and a listing on the New York Stock Exchange,
“ONE OF THE APPEALS OF LISTING ON THE LSE IS THAT THERE AREN’T MANY PRECIOUS METAL MINING COMPANIES ON THE EXCHANGE.” RANDY SMALLWOOD PRESIDENT AND CEO, WHEATON PRECIOUS METALS
Randy Smallwood, Wheaton’s president and chief executive officer, said in an interview. “We’re a Canadian company, so we’re not moving anywhere. We’re just expanding,” he said. “For us, a listing on the LSE is the next step in becoming a truly global company.” The company, he added, is not seeking to raise money from the listing but is looking to expand its investor base in Europe and, in particular, the United Kingdom. The move makes Wheaton the largest metals and mining company to join the exchange since Glencore (LSE: GLEN) in 2011. “One of the appeals of listing on the LSE is that there aren’t many precious metal mining companies on the exchange, especially on the streaming side,” Smallwood said. “We See STREAMING / 5
Special to The Northern Miner
amana Gold (TSX: YRI; NYSE: AUY; LSE: AUY) is expanding its footprint in the precious metals-rich Abitibi region of Quebec, Canada, by acquiring all shares in smaller rival Monarch Gold (TSX: MQR) it does not already own for $152 million (about US$114 million). The cash and share deal gives Yamana the Wasamac property, which is about 100 km from its 50%owned Canadian Malartic mine, as well as the Camflo mill, also in Quebec. Monarch said it would first spin off its other mineral properties and certain other assets and liabilities into a new company. Each outstanding common share of Monarch will then be exchanged for 19.2¢ in cash, 0.0376 of a Yamana share and 20¢ of a share in the new miner. Once the transaction is completed, Monarch’s shareholders will own 1.3% of Yamana and 100% of the new miner, and Yamana will own 100% of Monarch. The new company will hold Monarch’s Beaufor mine, McKenzie Break property, Croinor gold property, Swanson property and the Beacon gold asset. The Wasamac gold project is 15 km west of Rouyn-Noranda while the Camflo property is 15 km northwest of Val-d’Or. Yamana said Wasamac held the potential to be an underground mine achieving the same scale, grade, production and costs as its Jacobina mine in Brazil and its Canadian Malartic mine as well. Wasamac has existing proven and probable mineral reserves of 1.8 million ounces of gold. The property includes three mining concessions and 30 mining claims covering a total area of 17.39 square kilometres. According to a December 2018 feasibility study, Wasamac will be a 6,000 tonne-per-day operation. The mine is expected to churn out 142,000 ounces of gold a year for 11 years, at an all-in sustaining cost of US$630 per ounce. Initial capital investment has been estimated at $464 million. Monarch filed a project notice with Quebec’s Ministry of the Environment and the Fight Against Climate
THE TOP 20 MINING COMPANIES BY CAPITAL RAISED / 3
Change in November 2019. That is the first step in the mining permit application process, which generally takes 18 to 24 months, which means Yamana could have a new producing mine early next year. Yamana Gold has had its eye on Monarch for some time. In June, the senior gold producer bought Monarch’s Fayolle gold property in a cash and share deal valued at US$11.5 million. It also invested $4.2 million in Monarch’s $5.4 million private placement. Farooq Hamed of Raymond James was positive on the deal. “Overall, we view this acquisition as a good tuck-in for Yamana as it adds nearly 2 million oz. of reserves in Quebec with a project that has undergone a feasibility level review at a total cost to Yamana of ~2% of its market capitalization with share dilution of ~1%,” he commented in a research note. BMO analyst Jackie Przybylowski said Yamana’s latest move may end up with the company selling the Wasamac gold project to its Malartic See M & A / 6 PM40069240