Junior Gold Miner Soars on Takeover Agreement

Klondex Mines Ltd. (TSX:KDX), a junior gold miner, powered higher after agreeing to be acquired by Hecla Mining Company

Sean Mason | March 19, 2018 | SmallCapPower

It was M&A Monday in the Canadian gold patch, which included a well-known junior gold miner. Here’s some small stocks making big moves on Monday, March 19, 2018 (as of 4 pm EST):

Klondex Mines Ltd. (TSX:KDX) shares surged 59% to $2.86 on Monday after the junior gold miner announced that it has agreed to be acquired by Hecla Mining Company in exchange for US$2.47 per share in cash or shares of Hecla. The transaction is valued at US$462 million.

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As well, shares of Rye Patch Gold Corp. (TSXV:RPM) added 5% at $1.32 as the gold junior said it has agreed to be acquired by Alio Gold Inc. in an all-stock transaction. Rye Patch Gold shareholders will receive 0.48 common shares of Alio Gold for each Rye Patch common share held.

Maritime Resources Corp. (TSXV:MAE), meanwhile, reported that it has agreed to be acquired by Anaconda Mining Inc., in which Maritime Resources shareholders will receive 0.364 of a common share of Anaconda in exchange for each Maritime share held. Maritime Resources stock moved up 15% to $0.115 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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