Australian gold miner St Barbara has agreed to buy Canadian competitor Atlantic Gold in a deal worth $536mn.
The proposed acquisition would include Atlantic Gold’s Moose River Complex (MRC) in Nova Scotia, comprising the in-production open-pit Touquoy and a further three in development – Beaver Dam, Cochrane Hill and Fifteen Mile stream.
Atlantic Gold’s Chairman & Chief Executive Officer, Steven Dean, commented on the deal: “It not only recognizes the value of our current plan for the MRC mine, but rewards shareholders for the future growth and exploration potential that defines MRC as a truly world class asset. In addition to the cash consideration, SpinCo provides Atlantic shareholders with ongoing exposure to the Rozino Project which we believe has strong value potential. Our team has done a great job of creating value for shareholders and we are very proud of the high-quality gold mine that we have built in Nova Scotia and St Barbara shares this view.”
The Moose River mine is an important local employer with 280 full-time workers and around 70 contractors, including many Nova Scotia natives. Gold was first discovered in the area back in 1866, where in the 1930s a former underground mine produced 26,000 ounces of gold.
St Barbara CEO, Bob Vassie said of the $536mn deal: “The addition of Moose River to the portfolio diversifies St Barbara’s production base with a low-cost producing asset in a very favourable and prospective jurisdiction. It is a sustainable long-life operation of scale with a low AISC position which generates impressive margins. The asset also has significant growth potential which St Barbara identifies as an exciting opportunity.”