Mergers and acquisitions: Looking golden on the mining front

It seems silver is being turned into gold. Junior gold mines are heating up the mergers and acquisitions world in Canada as of late and investors who usually line their pockets with silver are taking a golden chance, which is revving up a sluggish market. In fact, one of the most prolific deals announced in Canada recently is of a more than 100-year-old mining company based stateside looking to acquire a Nevada-based mining company to the tune of US$462 million.

Things are starting to pick up this year after a slow start. Apparently by this time last year Canada already had 19 mergers in the metals and mining sector under its belt as opposed to six so far this year. So, latest deals are encouraging, experts say. And when it comes to competing with silver -- gold seems to be less speculative than it's often equally shiny cousin, but both metals will be feeling the heat from the marijuana and cryptocurrency markets which are likely to continue to enthral investors.

Another proposed merger is primed to unite two fledgling gold exploration companies. A market expert says these deals are the first of what he believes will be a wave of mergers by junior companies lowering their risk and diversifying their portfolios. That potential acquisition will cost roughly $263 million.

 The world of mergers and acquisitions can be like a labyrinth. It may take the prudent help of a British Columbia lawyer to navigate. A lawyer may be able to answer questions regarding the complexities of these types of deals.

Source: financialpost.com, "Gold miner Klondex jumps 61% on merger news as junior space heats up", Gabriel Friedman, March 19, 2018

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