Gold Junior Surges on Takeover Agreement

Atlantic Gold Corporation (TSXV:AGB), a gold junior, jumped after agreeing to be acquired by Australia’s St Barbara Ltd

Sean Mason | May 15, 2019 | SmallCapPower

An acquisition from Down Under pushed shares of a gold junior up sharply Wednesday. Here’s some small stocks making big moves on Wednesday, May 15, 2019 (as of 4 pm EST):

Atlantic Gold Corporation (TSXV:AGB) shares soared 38% to $2.88 on Wednesday after the gold junior announced that it has agreed to be acquired by Australia’s St Barbara Ltd. for C$2.90 in cash, or a total equity value of about C$722 million, plus shares in a spin-out company that will hold Atlantic’s interests in Velocity Minerals Ltd. (TSXV:VLC).

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As well, shares of Compass Gold Corp. (TSXV:CVB) slid 23% to $0.28 as the gold explorer released drill results from the Sikasso Property in Mali, which included 32 metres of 3.02 grams per tonne (g/t) gold from 24 metres.

Arrow Exploration Corp. (TSXV:AXL), meanwhile, reported preliminary results of the Rio Cravo Este-1 exploration well located on the Tapir Block in the Llanos Basin of Colombia, which indicated 103 feet true vertical depth of oil pay in multiple conventional sandstone reservoirs within the C7, Gacheta and Ubaque formations. Arrow holds a 50% beneficial interest in the well. Arrow Exploration stock popped 42% to $0.44 following the announcement.

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Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.

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