China’s Shandong Gold Mining, one of the country’s top bullion miners, has agreed to buy Canadian junior TMAC Resources (TSX: TMR) for around $149 million.
The deal will see the Chinese state-controlled
company pay C$1.75 a share in cash, or 4.2% above TMAC’s Thursday close on the
Toronto Stock Exchange.
The move would mark the third time in
the past few months that an underperforming Canadian gold producer is swept up
by larger and financially stronger senior.
Endeavour Mining (TSX:EDV) was the first to grab headlines, announcing in March the acquisition of smaller rival Semafo (TSX: SMF) in a C$1 billion ($691 million) deal.
Silvercorp Metals (TSX, NYSE: SVM) followed suit last month by buying Guyana Goldfields (TSX: GUY) for C$105 million ($75m) in cash and stocks.
More to come…