Moydow Mines International (TSX: T.MOY, Stock Forum), a miner with a promising gold royalty in Ghana, more than doubled after agreeing to a takeover. The Toronto-based firm was up 117% to 76 cents at last check.
The company agreed to be taken over by Franco-Nevada Mines (TSX: T.FNV, Stock Forum) in a deal valued at US$58 million. The deal provides for Franco-Nevada to take over Moydow’s main asset, its Ntotoroso Royalty – the 2% net smelter returns on a portion of Newmont Mining Corp.’s (NYSE: NEM, Stock Forum) Ahafo gold mine in Ghana.
The acquisition will be carried out in two parts. First, Franco-Nevada will pay $13 million for 20% of the Ntotoroso Royalty. Following that transaction, Franco-Nevada will acquire all of the outstanding shares of Moydow Mines in a share exchange with each Moydow share valued at 0.02863 of Franco Nevada shares.
Long342 did the math, and it looks positive. “each common share of Moydow they will give 0.02863 share of Franco-Nevada. At todays FNV.to price($29.20 Canadian) thats .835 per share. Maybe higher as Franco goes up now that it is coming off a low. MONEY IN THE BANK. National Bank bought thousands.”
Posters were also looking forward to an appearance by Franco-Nevada on Business News Network.
