Laurion Mineral Exploration Inc. V.LME

M&A Discussion Happening Down the Road

[ahsineeg]

For those that are not aware, the Greenstone Mine (a 60/40 JV between Equinox and Orion Mine Finance) is in M&A talks.  Orion is in active discussions with Gold Road Resources (Austrailian company) to sell their 40% interest for AUS $1 billion+.  The Greenstone Mine is about to come online after being built on-budget and just ahead of schedule.  1st gold pour expected for May 2024 and full commercial production in Q3-2024.

Greenstone Mine Stats:
-5.5 million oz of Gold in reserves
-$890 / oz all-in-sustraining cost (AISC)
-produce 400,000 oz of gold / year
-14 year mine life 
Full mine stats here 

Article about aquisition talks

Will be interesting to see if this becomes a bidding war and how it all unfolds.  In anycase, it will bring positive attention to the area.

[TraderRC]

Thanks for posting this Ahsineeg. If I am calculating correctly,  they are looking for $1b plus AUD , for their 40% portion.  Changing to CDN, we are looking at approx $884m, with the entire project being valued at approx $2.2 Billion CDN at approx 5.5 m oz, works out to approx $401 CDN /Oz or approx $291 USD /Oz. So we would be looking at approx $300 USD per Oz, in line with the

[GoldenBull999]

We need some m&a activity for the company we're all invested in + disappearance of this pesky never ending wall of shares at .40. No one wants to buy this stock currently besides the few people here. 

[goldenI]

Hey ahsineeg, I am watching this closely as well Backgound   January 2021 Orion Mine Finance (OMF) paid 285 million USD for a 50% interest in the Greenstone Goldmine.  - Valuation: 570 Million.   April 2021 (three months later) OMF sold a 10% stake back to Equinox for 60 million (cash and consideration). A 110% increase on the original valuation. Valuation 600 Million

[ahsineeg]

Update to this, Gold Road has walked away from talks to buy Orions 40% interest in the Greenstone mine. M&A is a long process.

[ahsineeg]

Meant to include the link to the article  Australian Mining Article https://www.australianmining.com.au/gold-road-exits-greenstone-talks/  PR https://goldroad.com.au/wp-content/uploads/2024/04/20240423-Ceasing-participation-in-Sales-Process.pdf