Merge & Acquisition Scenario: And If...I was thinking about our future for our little gem ANX and I was trying to look at all possible scenarios that could come out with the coming Feasibility Study for "The Beast" (Goldboro deposit) planned to be out this fall. MD&A talks about developing it and even look at M&A in the Atlantic area to ensure growth and increase shareholders value. It's all good and I feel confident that with the current management and the actual context within the current gold price and the bull market the junior mining sector is going through right now, this scenario could be a real possibility for the patient investors. ANX could be a winner and eventually be the next "Atlantic Gold" story.
Speaking of Atlantic Gold... a year ago, in July 2019, the Australian miner St Barbara offered 800$ for Atlantic Gold to acquire its portfolio in Nova Scotia. This offer was done with a nice premium when gold price was around 1400US$. I read St Barbara 2019 Annual Report (
published in July 2019), and this company seems to be quite agressive and well positioned to do some M&A to add economical deposits in their portfolio.
Goldboro, "the beast" deposit of Nova Scotia with it's current 1,4M oz of gold (and many other to be added with exploration), could add another 50k to 60k annually (to be confirmed in the coming FS) to St Barbara's gold production in their Atlantic's operations.
So... what if St Barbara, after ANX's FS is published this fall, makes an offer to buy ANX? It would totally makes sense in my opinion : St Barbara has the Cochrane Hill deposit nearby and others a bit further west (Beaver Dam and Fifteen Miles Stream). The acquisition of Goldboro would make those little deposits more interresting to develop, adding value to their portfolio. The company will publish their annual report soon, it would be interresting to see what was the impact of last years gold price 400 bucks increase bring to Atlantic's operations and how well the company will be positionned to increase their portfolio through M&A.
If this is the case, what do you think will be the offer for ANX? AGB got bought after launching successful production. Will they wait for production to be strated at Goldboro prior to make a bid? Or they will make a move before with the current favorable market?
I'm opening a discussion here... it would beinterresting to have everyone's opinion.