National Bank Says! 11:37 AM EST, 02/27/2023 (MT Newswires) -- i-80 GOLD CORP. (IAU.TO) said Monday that it agreed to acquire Paycore Minerals Inc. (CORE.V), owner of the FAD property located near i-80's Ruby Hill project in Nevada.
Under the terms, Paycore shareholders will receive 0.68 of an i-80 share for each Paycore share held, a 36% premium on the 20-day volume weighted average price of both Paycore and i-80 shares and a 26% premium based on the closing prices of both companies last Friday.
Upon completion, the combined company will be owned by 90% of existing i-80 shareholders while former Paycore shareholders will own the rest.
A special meeting of Paycore shareholders to approve the transaction is expected in late April.
"The consolidation of the core part of the Ruby Hill district will allow i-80 to aggressively pursue the optimization of the company's multi-year development plan - to create one of the largest U.S.-focused diversified mineral producers," said Matthew Gollat, i-80' s executive vice-president.
Meanwhile, National Bank of Canada said the deal provides a strategic benefit to i-80 as it consolidates the northern portion of the Eureka district while strengthening the company's land package.
The transaction also allows i-80 to pair the FAD deposit with its existing infrastructure.
"We don't expect it to move the needle given the modest deal size, yet it offers measurable upside and increases i-80's M&A appeal if exploration upside is proven out," National Bank said.
The bank gave i-80 an outperform rating and a $5.50 price target.