Merger and acquisition agreements around the world
In the metals and mining industry, merger and acquisition deals worth $7.7 billion were announced in the fourth quarter of 2020. This represents a 593.7 percent increase in the value of transactions from the previous quarter. Even when looking at the last four quarters, the fourth quarter increase is still 71.5 percent in value.
Europe leads the announced transactions in terms of value. In terms of volume, North America is ahead, followed by Asia-Pacific and Europe. When it comes to cross-border transactions, the US is at the top of the hit list, followed by Australia and Canada. An example of a purchase is the deal between Newmont and a gold company over a gold project in the Golden Triangle in British Columbia. Heavyweight Newmont paid a hefty 311 million US dollars in cash.
Question: What happens to the money? The investors invested in the bought-out company will reinvest the money they receive from Newmont in gold mining shares. After all, that was their intention, an investment in a gold company. This in turn benefits other gold companies, because they get new investors.
Skeena Resources or CanaGold, for example, would be two gold companies with projects in British Columbia.
Skeena Resources - https://www.youtube.com/watch?v=i-1hVggruL0 - is working in British Columbia to revive the formerly producing Snip and Eskay gold mines.
CanaGold is in the same region with its high-grade New Polaris gold project. An economic pre-feasibility study is already available.
Current corporate information and press releases from Skeena Resources (https://www.resource-capital.ch/en/companies/skeena-resources-ltd/).
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