Veteran Canadian mining investors are joining forces to purchase an obscure junior gold company, agreeing to lavish severance packages in exchange for control of a Colombian mining project.
The group of buyers includes former Goldcorp chair Ian Telfer, former Goldcorp chief executive officer David Garofalo, current Yamana Gold Corp. executive chair Peter Marrone and mining financier Frank Giustra.
Together, the group will buy $38-million in new shares of Toronto-based Caldas Gold Corp. as part of an $85-million private placement, and they will also assume operational control.
After the financing Caldas will be renamed Aris Gold Corp. and Mr. Telfer will become its board chair. Neil Woodyer, the former CEO of Leagold Mining and Endeavour Mining, will serve as CEO, while Mr. Marrone and Mr. Garofalo will both sit on the board. Mr. Giustra will be a special adviser.
Because the financing constitutes a change of control, Caldas’s top four executives will be paid US$8.8-million in cash severance
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