Goldcorp Inc. (TSE:G) announces C$520 million all-stock deal to acquire Kaminak Gold Corporation (CVE:KAM)
SmallCapPower | May 13, 2016: A rising gold price has lifted the stock prices of many gold-related equities so far in 2016. This has provided a greater opportunity for gold producers to use their stock as currency to make acquisitions, such as the most recent one involving Goldcorp and one of our top stocks to watch from PDAC 2016.
Kaminak Gold Corporation (CVE:KAM) shares surged 26% to $2.50 on May 12, 2016, after the gold project developer announced that it has agreed to be acquired by Goldcorp Inc. (TSE:G) in an all-stock transaction valued at approximately C$520 million. The shareholders of this gold penny stock will receive 0.10896 common shares of Goldcorp for each Kaminak share held.
SmallCapPower featured Kaminak Gold as a Top Pick at PDAC 2016
SmallCapPower featured Kaminak Gold as a Top Pick at PDAC 2016.
Its Coffee gold project in the Yukon was the talk of more than a few experts/analysts during the past couple years. And, a January 2016 feasibility study confirmed its potential – estimated production of 184,000 ounces of gold per year over a 10-year mine life from heap leach operations. Requiring C$318 million of capital, this project could generate an NPV (5% discount) of C$295 million and an IRR of 27%, at a gold price of US$1,000 per ounce, and with All-In Sustaining Cash Costs of just US$550 per ounce. Analyst and newsletter writer John Kaiser, in an interview with BNN at PDAC 2016, said he thought Kaminak will get acquired “within a year.”