Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

Bullboard - Stock Discussion Forum Teranga Gold Corporation T.TGZ

Teranga Gold Corp is a Canadian-based gold company with assets is production, development, and exploration situated on prospective gold belts across West Africa in Burkina Faso, Cote d'lvoire and Senegal.

TSX:TGZ - Post Discussion

Teranga Gold Corporation > Understanding the deal
View:
Post by matt2018 on Dec 10, 2019 6:00pm

Understanding the deal

Love the market reaction, but do I have this correct?

Shares outstanding before the deal were 107.6M
They are adding 59.8M new shares for a total of 167.4M (56% more shares).
19.2M shares to Barrick, 1.6M shares to minority owner, 11.1M shares sold to Tablo,
27.5 shares sold to public

Debt goes from $189M to $414M ($225M to Barrick).
Proceeds of the shares sold to Tablo and public  of $151M cash.
($75M of this to Barrick, $76M to TGZ corporate).
Cash goes from $28M to $104M for a plus $76M.
So net debt changes from $161M to $310M for a difference of -$149M.

So the purchase price for the asset comes down to:
$149M plus 59.8M shares.

all figures are US$
Comment by templetooth2 on Dec 10, 2019 6:07pm
Read the news release.
Comment by ruffus23 on Dec 10, 2019 6:19pm
changes tgz from having two B grade mines to having a world class deposit. Will have tgz added to more indexes and more institutional interest.
Comment by ruffus23 on Dec 10, 2019 6:20pm
no insider buying, is there a blackout period or something?
Comment by matt2018 on Dec 11, 2019 6:48am
What I was alluding to was that as much as I like the asset (seems a nice fit for TGZ), 56% more shares to be issued (plus added debt of $149M US) seems a little steep in relation to where TGZ was valued before this deal (all things considered). I suppose that could also mean that the company was way undervalued pre-deal.
The Market Update
{{currentVideo.title}} {{currentVideo.relativeTime}}
< Previous bulletin
Next bulletin >

At the Bell logo
A daily snapshot of everything
from market open to close.

{{currentVideo.companyName}}
{{currentVideo.intervieweeName}}{{currentVideo.intervieweeTitle}}
< Previous
Next >
Dealroom for high-potential pre-IPO opportunities