{"id":1693,"date":"2025-06-21T09:55:46","date_gmt":"2025-06-21T13:55:46","guid":{"rendered":"https:\/\/www.inflation.us\/news\/?p=1693"},"modified":"2025-06-21T09:55:47","modified_gmt":"2025-06-21T13:55:47","slug":"recent-gold-ma-activity-has-benefited-buyers-not-sellers","status":"publish","type":"post","link":"https:\/\/www.inflation.us\/news\/articles\/recent-gold-ma-activity-has-benefited-buyers-not-sellers\/","title":{"rendered":"Recent Gold M&A Activity Has Benefited Buyers Not Sellers"},"content":{"rendered":"\n

Recent M&A activity<\/strong> in the gold <\/strong><\/span>mining<\/strong> industry<\/strong> has generally been to the benefit<\/strong><\/span> of the buyers<\/strong>, not<\/strong><\/span> the sellers<\/strong>.<\/span><\/span><\/p>\n\n

Probably the worst<\/span> deal<\/strong> we have seen was done in March 2025<\/strong> when O3 Mining<\/strong> was acquired<\/strong><\/span> by Agnico Eagle Mines (AEM)<\/strong> for CAD$204 million<\/strong>. O3 Mining<\/strong> had total gold resources<\/strong><\/span> of 1.7 million oz<\/strong> directly adjacent<\/strong><\/span> to AEM's Canadian Malartic Mine<\/strong>. O3's Marban Alliance project<\/strong> was worth much more<\/strong><\/span> than CAD$204 million<\/strong>. Why did O3 accept<\/span><\/strong> such a bad<\/span> deal<\/strong>? It was because of "change of control" provisions<\/strong>. O3's CEO <\/strong>had little<\/span>\/no<\/span> stake<\/strong> in the company, but with a "change of control"<\/strong>, he suddenly received<\/strong><\/span> a windfall<\/strong> of millions of dollars<\/strong><\/span> in cash, stock, and bonuses.<\/span><\/span><\/p>\n\n

Imagine if Augusta Gold (TSX: G)<\/strong> with 1.92 million oz<\/strong> of total gold resources<\/strong><\/span> accepted<\/strong><\/span> only CAD$230.4 million<\/strong> or $2.68 per share<\/strong> for the company… how horrible<\/strong><\/span> that would be for shareholders. To maximize<\/span><\/strong> the value of the company, they need to develop<\/strong><\/span> their fully permitted<\/span> Reward project<\/strong> (O3 didn't<\/span><\/strong> own<\/span><\/strong> any fully permitted<\/span> gold projects<\/span><\/strong>), and bring it into production<\/strong><\/span>, which will cause Reward<\/strong> to be valued for the full Net Present Value of US$308.07 million<\/strong> or $4.42 per share<\/strong> (including debt repayment). This doesn't<\/strong><\/span> include any value for Bullfrog<\/strong>, which has 3.5x more <\/strong><\/span>gold<\/strong><\/span> only a few kilometers away. Including Bullfrog<\/strong>, Augusta Gold (TSX: G)<\/strong> can easily reach $10-$15 per share<\/strong> in the very near future.<\/span><\/span><\/p>\n\n

Richard Warke<\/strong> owns a large<\/span> percentage<\/strong> of Augusta Gold (TSX: G)<\/strong> shares outstanding and doesn't<\/strong><\/span> care<\/strong><\/span> about "change of control"<\/strong> provisions. He will only profit big<\/strong><\/span> by selling the company for the highest possible<\/span> price<\/strong>. His interests<\/strong> are aligned<\/strong><\/span> with shareholders<\/strong>, unlike<\/strong><\/span> the management<\/strong> of O3 Mining<\/strong> who screwed<\/strong><\/span> everyone over.<\/span><\/span><\/p>\n\n

The best<\/span> M&A deal<\/strong> we have seen this year was Orogen Royalties (TSXV: OGN)<\/strong> being acquired<\/strong><\/span> by Triple Flag Precious Metals (TFPM)<\/strong>, where TFPM<\/strong> is paying US$250 million<\/strong> for only a 1% NSR royalty<\/strong> in AngloGold Ashanti (AU)'s Arthur Gold Project<\/strong> directly adjacent<\/strong><\/span> to Augusta Gold (TSX: G)'s Reward and Bullfrog gold projects<\/span><\/strong>. TFPM didn't<\/span><\/strong> want any of OGN's non-Beatty, Nevada, assets<\/strong> they are all being spun off<\/strong><\/span> to OGN's existing shareholders<\/strong> as a new publicly traded<\/span> company<\/strong>.<\/span><\/span><\/p>\n\n

TFPM paying<\/span> US$250 million<\/strong> for only a 1% NSR royalty<\/strong> in Arthur<\/strong> (formerly called Expanded Silicon<\/strong>) is a record-breaking<\/strong><\/span> amount. Therefore, we can expect any future<\/span> deal<\/strong> to acquire<\/strong><\/span> Augusta Gold (TSX: G)<\/strong> to take place at a near record high<\/span> valuation<\/strong> of at least<\/span> US$500 per oz <\/strong>of gold resources<\/span><\/strong> or higher<\/strong><\/span>.<\/span><\/span><\/p>\n\n

This is the biggest<\/strong><\/span> and most important<\/span> new<\/span> gold district<\/span><\/strong> to be developed<\/strong><\/span> this decade and Augusta Gold (TSX: G)'s Reward Gold Mine<\/span><\/strong> will be first<\/strong><\/span> to reach production<\/strong><\/span> in the district… with construction<\/strong><\/span> to begin<\/strong><\/span> as soon as Augusta's financing deal<\/strong> with the Trump Administration<\/strong> is complete<\/strong><\/span>.<\/span><\/span><\/p>\n\n

Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. NIA’s President has purchased 232,200 shares of G and may purchase more shares. This message is meant for informational and educational purposes only and does not provide investment advice.<\/em><\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Recent M&A activity in the gold mining industry has generally been to the benefit of the buyers, not the sellers. Probably the worst deal we have seen was done in March 2025 when O3 Mining was acquired by Agnico Eagle Mines (AEM) for CAD$204 million. O3 Mining had total gold resources of 1.7 million oz […]<\/p>\n","protected":false},"author":1,"featured_media":1694,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[55,42,12,9,40],"class_list":["post-1693","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","tag-aem","tag-au","tag-g","tag-gold","tag-ogn"],"_links":{"self":[{"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/posts\/1693","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/comments?post=1693"}],"version-history":[{"count":1,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/posts\/1693\/revisions"}],"predecessor-version":[{"id":1695,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/posts\/1693\/revisions\/1695"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/media\/1694"}],"wp:attachment":[{"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/media?parent=1693"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/categories?post=1693"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/tags?post=1693"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}