In the latest Chinese acquisition of a Canadian gold miner, Shandong Gold is buying TMAC Resources (TSX: TMAC) and its Hope Bay gold project in Nunavut for US$149 million.
The news follows Zijin Mining’s acquisition of Continental Gold in March for C$1.3 billion and a bid from Silvercorp Metals (TSX: SVM; NYSE-AM: SVM) for Guyana Goldfields (TSX: GUY) in April for C$105 million.
Under the latest M&A deal, Shandong Gold will pay US$149 million in cash to acquire all of TMAC’s shares for $1.75 per share, and acquire another 12 million shares in a private placement at the same price for a further US$15 million.
The offer marks a 52% premium to TMAC’s 20-day volume-weighted average price as of May 6 and the Canadian company’s key shareholders – Resource Capital Funds and Newmont (TSX: NEM; NYSE: NEM) support the transaction. RCF and Newmont own a combined 58.6% stake in the company.