VANCOUVER (miningweekly.com) – Gold miner Leagold Mining said on Wednesday it has received clearance from the Mexican Competition Commission to proceed with the proposed $264-million all-scrip deal to acquire Brio Gold.
The clearance decision from the Comisión Federal de Competencia Económica was the last government agency approval required before completing the acquisition, which is expected to occur by May 24.
Under the terms of the deal, Brio shareholders will receive 0.922 of a Leagold share for each share held, at an implied price of C$2.80 per Brio share – a premium of 57% based on both companies' five-day weighted average share prices on the TSX at market close on January 24, when the deal was first announced.
Yamana Gold had in December completed the spin-out of Brio, forming a standalone public company focused on a portfolio of noncore assets in Latin America and Canada as it honed operations at its core assets. The transferred assets included Fazenda Brasileiro, Pilar and C1 Santa Luz, as well as some related exploration concessions.