- GCM Mining Corp. (GCM) will acquire all outstanding shares of Aris Gold Corp. (ARIS)
- The resulting entity will be named Aris Gold Corporation
- This transaction creates the largest gold company in Colombia, with diversification in Guyana and Canada
- The businesses sit in a strong financial position to de-risk growth projects, with combined cash and committed funding of US$657 million and free cash flow generation from the Segovia Operations
- It also has a substantial combined gold reserve of 3.8 Moz and resource base of 18.3 Moz measured and indicated and 7.7 Moz inferred
- GCM Mining shares are up 8.82 per cent at $3.70 ass of 1:15 pm ET
GCM Mining Corp. (GCM) will acquire all outstanding shares of Aris Gold Corp. (ARIS).
The resulting entity will be named Aris Gold Corporation and will be led by Ian Telfer as Chair and Neil Woodyer as CEO and Director.
This transaction creates a top-of-the-class company among junior producers and the largest gold company in Colombia, with diversification in Guyana and Canada. Aris Gold Corp. will boast a larger scale and significant free cash flow.
The businesses sit in a strong financial position to de-risk growth projects, with combined cash and committed funding of US$657 million and free cash flow generation from the Segovia Operations.
It also has a substantial combined gold reserve of 3.8 Moz and resource base of 18.3 Moz measured and indicated and 7.7 Moz inferred.
Aris Gold Chair, Ian Telfer stated that the combined group creates a top-in-class company with multiple tier one assets.
“After Aris Gold became operator of the Soto Norte joint venture, joining forces with GCM became a logical next step. Our increased scale will also broaden our future opportunities to continue building a +1 million ounce producer over the next few years.”
GCM shareholders and Aris Gold shareholders (taking into consideration the 44.3 per cent of Aris Gold currently held by GCM) are expected to own, on a diluted in-the-money basis, approximately 74 per cent and 26 per cent of the combined group, respectively.
GCM Mining Corp. (GCM) is a mid-tier gold producer engaged in mine building and operating in Latin America.
GCM Mining shares are up 8.82 per cent at $3.70 ass of 1:15 pm ET.
