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Highlights
- Aura Minerals to acquire Bluestone Resources for C$0.50 per share, gaining control of the Cerro Blanco Gold Project.
- Minera Alamos strikes an all-share deal to acquire Sabre Gold Mines, expanding its gold production portfolio.
- Both deals strengthen the companies' presence in North and Central America, increasing gold production and resources.
Canada’s mining sector is witnessing a surge in mergers and acquisitions, as two major players, Aura Minerals (TSX:ORA) and Minera Alamos (TSX-V:MAI), announced key deals to acquire fellow Canadian companies. Both moves are set to significantly enhance their respective gold and copper production capacities and strengthen their resource portfolios.
Aura Minerals to Acquire Bluestone Resources
Aura Minerals has signed an agreement to fully acquire Vancouver-based Bluestone Resources (TSX-V:BSR) for C$0.50 ($0.55) per share. The deal is structured as a combination of cash and Aura shares, and represents a 40% premium to the volume-weighted average price of Bluestone shares on the TSX Venture Exchange for the 25-day period ending October 24, 2024.
Bluestone shareholders will have the option to receive a cash payment of C$0.287, 0.0179 of an Aura common share, or a combination of both. This acquisition will provide Aura with full control of Bluestone’s Cerro Blanco Gold Project in Guatemala, as well as the nearby Mita Geothermal Project. The Cerro Blanco deposit is described by Aura CEO Rodrigo Barbosa as “world-class,” despite facing social and institutional challenges.
“We are confident that, over the next few years, by integrating it with Aura’s 360 vision, we can refine our strategic approach to make Cerro Blanco a flagship project that exemplifies the utmost respect for social and environmental responsibilities while delivering value to all stakeholders,” said Barbosa.
In addition to the acquisition price, Bluestone shareholders will also receive a contingent value right, allowing for a potential cash payment of up to C$0.2120 per share. This payout will be made in three annual installments once Cerro Blanco reaches commercial production.
Bluestone’s CEO Peter Hemstead expressed support for the deal, stating that after a thorough strategic review, the acquisition by Aura was the best path forward for the company. The transaction has been unanimously approved by the boards of both companies but is still subject to shareholder, court, TSX Venture Exchange, and regulatory approvals.
Minera Alamos Acquires Sabre Gold Mines
Meanwhile, Minera Alamos has entered into a definitive all-share agreement to acquire Sabre Gold Mines (TSX:SGLD). As part of the agreement, Sabre Gold shareholders will receive 0.693 of a Minera Alamos share for each Sabre Gold share they hold.
The acquisition will add Sabre Gold’s flagship asset, the past-producing Copperstone Mine in La Paz County, Arizona, to Minera Alamos’ portfolio. The Copperstone Mine, which produced 514,000 ounces of gold between 1987 and 1993, is projected to contribute 150,000 ounces of annual gold production, boosting Minera Alamos’ total gold resource inventory by 35% to nearly 1.9 million ounces.
Minera Alamos CEO Darren Koningen highlighted the importance of the Copperstone project, noting its “significant infrastructure and permits in place,” which will enable the company to quickly move the project toward production.
In conjunction with the acquisition, Minera Alamos has also negotiated with Sabre Gold’s creditors to eliminate approximately C$9.4 million in debt.
