Erik Wetterling, Founder and Editor of The Hedgeless Horseman website, joins me to discuss the impact of merger and acquisition transactions within the gold and silver developers and producers; and how these deals are further consolidating down the multi-ounce resources into fewer and fewer hands. M&A deals can also free up investor funds that were stuck in these companies to then circulate into other junior resource stocks, and this also gets more speculation going as to which companies will be next to be acquired or merge.
We start off reviewing the higher profile acquisition of Osisko Mining Inc. (TSX:OSK) (OTC: OBNNF) by Gold Fields Limited (NYSE: GFI) for a 55% premium. It was interesting to note how many other advanced exploration and development companies with large resources also spiked up double-digits once the transaction was announced, in consideration for how their ounces in the ground should be rerated higher.
Then we looked at a few of the recent mergers between multi-million ounce projects into larger vehicles to attract more attention and better cost of capital; like Treasury Metals Inc. (TSX: TML; OTCQX: TSRMF) and Blackwolf Copper and Gold Ltd. (TSXV:BWCG; OTCQB: BWCGF) consolidating to form NexGold Mining Corp. (TSXV: NEXG) (OTCQX: NXGCF) and Nighthawk Gold Corp. (TSX: NHK; OTCQX: MIMZF) and Moneta Gold Inc. (TSX: ME; OTCQX: MEAUF) combing to form STLLR Gold Inc. (TSX: STLR) (OTCQX: STLRF).
Wrapping up we look at the journey Integra Resources Corp. (TSXV: ITR) (NYSE American: ITRG) has been on with it first merging with Millennial Precious Metals to combine multiple development and exploration projects into a larger entity in the Great Basin of Idaho and Nevada; but then recently announcing the acquisition of Florida Canyon Gold Inc. (TSXV: FCGV) (OTC: FCGVF). This now brings a producing gold asset into their pipeline, from which the revenues will fund future derisking work at their other projects.
*In full disclosure, many of the companies mentioned by Erik in this interview, are positions held in his personal portfolio, and they also may be site sponsors of The Hedgeless Horseman website at the time of this recording.
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