M&As this week: Pan American, Newmont Mining, LSC Lithium

18 January 2019 (Last Updated January 18th, 2019 10:34)

Pan American is set to acquire Tahoe Resources for $1.07bn, under a plan of arrangement, with the Supreme Court of British Columbia having passed the final order for the same.

Pan American is set to acquire Tahoe Resources for $1.07bn, under a plan of arrangement, with the Supreme Court of British Columbia having passed the final order for the same.

The existing shareholders of Pan American will hold a 73% stake in the new company, while the shareholders of Tahoe Resources will own the remaining 27% stake, following the acquisition.

The shareholders of Tahoe Resources may either receive $3.40 in cash or 0.2403 Pan American shares for each share they currently hold. They will also earn contingent consideration in the form of contingent value rights (CVRs), in return for 0.0497 Pan American shares for each Tahoe share, which is estimated to be valued at $221m.

“Pluspetrol Resources has entered an arrangement agreement to acquire LSC Lithium for C$111m.”

Tahoe Resources is a US-based mid-tier precious metals company engaged in the production of gold and silver, while Canada-based Pan American Silver is focused on its mining operations in Bolivia and Argentina.

Newmont Mining has signed a definitive agreement with Goldcorp to acquire the entire outstanding common shares of the latter for $10bn.

A new company named Newmont Goldcorp will be formed following the acquisition, wherein the shareholders of the companies will respectively own 65% and 35%.

Based in the US, Newmont Mining is engaged in producing gold, copper, and silver, while Goldcorp is focused on the development and exploration of precious metals and based in Canada.

Pluspetrol Resources has entered an arrangement agreement to acquire LSC Lithium for C$111m.

The transaction will involve the acquisition of all the issued and outstanding common shares of LSC for C$0.6612 a share. LSC has also agreed to pay approximately C$4.48m to Pluspetrol in the event of termination of the arrangement agreement.

Canada-based LSC Lithium is engaged in developing lithium projects in Argentina, while Pluspetrol Resources is an oil and gas company focused on the production of hydrocarbons.