It was just announced this morning that Newmont Mining (NEM) is acquiring Goldcorp (GG) for $10 BILLION, the BIGGEST gold mining acquisition in history! It will create the world's LARGEST gold mining company worth $30 BILLION!
The investor who was responsible for Goldcorp becoming a $10 BILLION market cap company is Frank Giustra. Back on March 14, 2001, a gold/silver mining company called Wheaton River Minerals announced that it was restructuring its Board of Directors from a total of 8 members down to 5 with 3 new members joining to take over control of the company: Frank Giustra, Ian Telfer, and Neil Woodyer. At the time, Wheaton River Minerals was trading for only $0.40 per share with a market cap of CAD$20 million. The company also announced that it would be raising CAD$5.5 million in a private placement priced at $0.50 per share, equal to a 25% premium. Read the press release on the Wayback Machine by clicking here.
Giustra's timing was impeccable. Two weeks later on April 2, 2001, gold bottomed at a 22-year low of $255.95 per oz. When the private placement closed on May 24, 2001, Wheaton River Minerals had a total cash position of CAD$24 million and no debt.
Over the follow year, gold rallied by 27.37% to $326 per oz. During the same time period, Wheaton River Minerals rallied by 187.5% or 6.85X more than gold. On May 30, 2002, the company announced that it was raising $126.5 million in a private placement at $1.15 per share. Read the press release on the Wayback Machine by clicking here.
Nine months later on February 28, 2003, with gold up to $347 per oz, Wheaton River Minerals announced that it closed on equity financing of $333.5 million in a private placement priced at $1.45 per share. Read the press release on the Wayback Machine by clicking here.
Six months later on August 25, 2003, with gold up to $360 per oz, Wheaton River Minerals announced that it closed on additional equity financing of $100 million in a private placement priced at $2.10 per share. Read the press release on the Wayback Machine by clicking here.
Less than two months later on October 14, 2003, with gold up to $374 per oz, Wheaton River Minerals announced that it closed on additional equity financing of $120 million in a private placement priced at $3.15 per share. Read the press release on the Wayback Machine by clicking here.
Over the following year, gold rallied an additional 21.39% to $454 per oz. On December 5, 2004, Goldcorp announced that it was acquiring Wheaton River Minerals for $4.29 per share or CAD$2 BILLION in stock to create a $5 BILLION gold mining company: click here to see for yourself!
After Goldcorp closed on its acquisition of Wheaton River Minerals, the CEO of Wheaton River Minerals Ian Telfer (who joined Wheaton River's Board at the same time as Frank Giustra) became the new CEO of Goldcorp. Today, Ian Telfer continues to serve as Goldcorp's Chairman and he will now become Deputy Chairman of Newmont!
Ian Telfer has remained very close to Frank Giustra and also served as Chairman of Giustra's Uranium One, which reached a peak market cap in 2007 of $7.9 billion before being acquired by the Russians.Today, Giustra is betting big on a new gold mining company that reminds us very much of Wheaton River Minerals when it was trading for only $0.40. Giustra's new gold mining company is Fiore Gold (TSXV: F). If you read Giustra's bio on Wikipedia by clicking here you will see that he is CEO of Fiore Group of companies. It also tells you all about his involvement in Wheaton River Minerals and Goldcorp. He is listed on Fiore Gold's web site as the company's top advisor, which you can read by clicking here.
A major repricing to the upside for Fiore Gold could be imminent. Fiore has a key breakout point of $0.425 per share. When Fiore surpasses $0.425 we believe it could explode to well above $0.50 per share within the following 2-3 trading days. Fiore's 4Q and year-end 2018 results are likely to be released 10 days from today!
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