Diamond In The Rough: Mining as a potential bright spot in M&A – by Jamie Parker (Deal Law Wire.com – June 23, 2020)


The mining sector has been one of the few bright spots in Canadian M&A since the COVID-19 pandemic drastically changed the landscape for transactions, with several large deals announced and continuing despite the pandemic.

As with other business sectors, mining has been significantly impacted by regulations and the economic slowdown caused by the pandemic. However M&A opportunities for Canadian mining companies have persisted despite these issues.

One of the first significant deals announced during the COVID-19 pandemic was Endeavor Mining Corporation’s combination with SEMAFO Inc., which valued SEMAFO at $1 billion.

Other recent deals include Shandong Gold Group acquiring Canadian-based TMAC Resources for $149 million and the Canadian company SSR Mining Inc. merging with Alacer Gold Corp. in a deal with a combined valuation of $4 billion.

The reasons for this sustained activity include, in part, the continued activity of many mining operations despite harsh economic conditions and increased regulations, as well as the strong prices of many metals.

For the rest of this column: https://www.deallawwire.com/2020/06/23/diamond-in-the-rough-mining-as-a-potential-bright-spot-in-ma/?utm_source=Mondaq&utm_medium=syndication&utm_campaign=LinkedIn-integration

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