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Aris Mining Corp T.ARIS

Alternate Symbol(s):  T.ARIS.WT.A | CLGDF | ARMN | N.AMNG.NT.U

Aris Mining Corporation is a gold producer in the Americas. The Company is engaged in operating two mines with expansions underway in Colombia. The Segovia Operation is located in the Segovia-Remedios mining district in the department of Antioquia, Colombia, approximately 180 kilometers (km) northeast of Medellin. The Segovia Operations comprises four active underground gold mining operations, which include El Silencio, Sandra K, Providencia, and Carla. It has over 11 titles with a total area of 5,335.58 hectares (ha). The Marmato underground gold mine is located on the west side of the town of Marmato, in Marmato municipality of Caldas Department, in the Republic of Colombia, approximately 80 km from Medellin and 200 km northwest of the capital city of Bogota. The Company is also the operator and 51% owner of the Soto Norte Project, which is advancing to develop a new underground gold, silver and copper mine. In Guyana, it is advancing the Toroparu, a gold/copper project.


TSX:ARIS - Post by User

Comment by Heywood_Silverson May 21, 2021 12:54pm
182 Views
Post# 33248434

RE:RE:vote

RE:RE:voteAlthough the merger is a fair deal for GLDX shareholders and will be accretive for GCM shareholders, keep in mind that the value of the Toroparu project will be somewhat muddled once it is absorbed by GCM.

Toroparu could easily be valued on a NPV per share basis since it was controlled by a junior that was free of EPS targets and the daily rigamarole of the actual business of mining.  Once the merger is completed, Toroparu will no longer be judged on its own merits but will be rollled up with all the other assets of a mining company - we will now be judged on hitting earnings targets and other such quarterly hurdles.  It is more complicated once you are acquired, since the metrics used to judge your value change.

I think the upside to Toroparu has been somewhat muted, but when considering the old adage about a bird in hand is worth two in the bush, I am content to vote yes to the merger.

BTW, I'll throw this one out there:  I think that GPL and GCM would make ideal future partners once the M&A really starts heating up in the mining space.  They have similar market caps and operate in similar jurisdictions.  A combination of those two would expand their geographic footprint (adding a measure of safety to the shares) and take them down the path towards moving from mid-tiers to a major.  Just my idle speculation, but I think it would make a good fit.
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