Canada metals, mining sees 19.4% rise in deal activity

3rd April 2020 By: Simone Liedtke - Creamer Media Social Media Editor & Senior Writer

Canada’s metals and mining industry saw a rise of 19.4% in overall deal activity during February, when compared with the last 12-month average, according to analytics and consulting company GlobalData’s deals database.

A total of 43 deals worth $430.7-million were announced in February, compared with the 12-month average of 36 deals.

Mergers and acquisitions (M&A) was the leading category in the month in terms of volume with 40 deals, which accounted for just over 93% of all deals.

In second place was private equity with two deals, followed by venture financing with one transaction, accounting for 4.7% and 2.3%, respectively, of overall deal activity in the country’s metals and mining industry during the month.

In terms of the value of deals, M&A was the leading deal category in Canada’s metals and mining industry with total deals worth almost $310-million, while private equity and venture financing deals totalled $120.5-million and $150 000, respectively.

The top five metals and mining industry deals accounted for 92.3% of the overall value during February 2020.

The combined value of the top five metals and mining deals stood at $397.3-million, against the overall value of $430.7-million recorded for the month.

The top five metals and mining industry deals of February 2020 tracked by GlobalData were Ontario Teachers’ Pension Plan’s $300-million private equity deal with New Gold; the $49.1-million asset transaction with Yamana Gold by Guerrero Ventures; Tunghsu Group’s $23-million acquisition of The Kami Mine partnership; as well as the $15.1-million acquisition of Otis Gold by Excellon Resources and the Alexco Environmental Group management team’s acquisition of Alexco Environmental Group for $10-million.