Snowline Gold Corp V.SGD

Possible future valuation of Snowline

[megacopper]

Details of Kaminak buyout by Goldcorp in 2016 when gold was $1300 an ounce. The buyout amount was $520 million and they had proved up only a few million ounces at an average grade of 1.45 g/t. What Snowline has at Valley so far is at least 3 times the size with more than 10 million ounces at a similar grade. And the price of gold is now $1800 an ounce. My best guess would put SGD's valuation at triple that amount just based on the Valley deposit. 


 

Goldcorp Announces Acquisition of Kaminak Gold Corporation

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NEWS PROVIDED BY

Goldcorp Inc. 

May 12, 2016, 08:30 ET

 

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VANCOUVER, May 12, 2016 /CNW/ - Goldcorp Inc. ("Goldcorp") (TSX: G, NYSE: GG) and Kaminak Gold Corporation ("Kaminak") (TSX-V: KAM) are pleased to announce that they have entered into a definitive arrangement agreement (the "Arrangement Agreement") pursuant to which Goldcorp has agreed to acquire, by way of a plan of arrangement (the "Arrangement"), all of the outstanding shares of Kaminak.  The total consideration offered for all of the outstanding shares of Kaminak is approximately C$520 million. 

Under the Arrangement, each common share of Kaminak will be exchanged for 0.10896 common shares of Goldcorp. Based on the closing price of Goldcorp's common shares on the Toronto Stock Exchange on May 11, 2016, the transaction values each Kaminak share at C$2.62. The consideration received by Kaminak shareholders represents a 40% premium over the 20-day volume-weighted average share price of Kaminak from all trading on Canadian exchanges for the period ending May 11, 2016 and a premium of 33% over Kaminak's closing share price on the TSX Venture Exchange on May 11, 2016. The number of Goldcorp shares to be issued under the Arrangement will be approximately 21.6 million based on the issued and outstanding shares of Kaminak as of the announcement date, but will be subject to adjustment depending on the number of Kaminak options that may be exercised prior to the completion of the Arrangement. 

Kaminak's key asset is the 100%-owned Coffee Gold project ("Coffee"), a structurally hosted hydrothermal gold deposit located approximately 130 kilometres south of the City of Dawson, Yukon. Coffee is a high-grade, open pit, heap leach mining project located in a top tier mining jurisdiction.  The Coffee land package, comprising over 60,000 hectares, demonstrates significant potential for near-mine discoveries, with mineralization remaining open along strike and at depth. Coffee currently has total indicated gold mineral resources1 of 3.0 million ounces (63.7Mt at 1.45g/t) inclusive of total probable gold mineral reserves1 of 2.2 million ounces (46.4Mt at 1.45g/t), and total inferred gold mineral resources1 of 2.2 million ounces (52.4Mt at 1.31g/t). 

[MightyPoPo]

This is interesting. Thanks for sharing. I see that earlier in the year, the Yukon gov't gave green light for Newmont to proceed with mine construction.