Monday, May 15, 2017 Derek Macpherson

Eldorado Comes to Canada; To Acquire ICG

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Integra Gold Corp. (TSXV:ICG) and Eldorado Gold Corp. (TSX:ELD, NYSE:EGO) announced that they have entered into a definitive agreement for Eldorado to acquire Integra for ~C$1.21 per share in either Eldorado shares (0.24250 Eldorado shares), cash of C$1.21250 or cash and shares (0.18188 and C$0.30313). Compensation available to Integra shareholders is limited to C$129 million in cash (~25% of the transaction). The offer by Eldorado represents a 52% premium of the May 12, 2017 close, and a 46% premium based on the 20-day volume weighted average price (VWAP). This consideration represents, 1.0x NAV and US$122/oz, which is a premium to precedent transactions (0.7x NAV and US$41/oz). With this being a friendly transaction and taking into account the valuation, we believe there is a low probability (~10-15%) of a higher bid materializing from one of the larger players in the region or a new entrant. However, this should benefit smaller regional players like Radisson Mining Resources Inc. (TSXV:RDS), Monarques Gold Corp. (TSXV:MQR), Probe Metals Inc. (TSXV:PRB), QMX Gold Corp. (TSXV:QMX) and Alexandria Minerals Corp. (TSXV:AZX) and continues to highlight the scarcity of political stable development projects as we have previously highlightedread more

Sunday, July 17, 2016 Derek Macpherson

Failed Coup Raises Risk for Projects in Turkey

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On Friday, there was an attempted coup of the Turkish government. While the coup was quickly thwarted by government forces, effectively maintaining the status quo; in our view this has increased the risk profile for foreign mining companies operating in Turkey. We expect that this increased risk is likely to negatively impact the stocks Monday morning. Those that essentially have pure-play exposure, like Alacer Gold (TSX:ASR) or key projects within the country like Eldorado Gold (TSX:ELD, NYSE:EGO) and Pilot Gold (TSX:PLG) are likely to be the most impacted.  read more


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