Dundee expands into Ecuador with IVN Metals buy – by Cecilia Jamasmie (Mining.com – May 31, 2021)


Canada’s Dundee Precious Metals (TSX: DPM) will add its first project in the Americas to its portfolio by acquiring all the shares it doesn’t already own in junior miner INV Metals (TSX: INV), which owns the advanced-stage Loma Larga gold project in southern Ecuador.

As part of the deal, Dundee will buy each of the issued and outstanding common shares of INV Metals it does not currently hold for 0.0910 of a DPM common share, or about C$0.80 a piece. This represents a 63% premium to the closing price of INV Metals stock on the Toronto Exchange on May 28.

Dundee, which owns about 23.5% of INV’s common shares, noted the transaction had strong shareholder support. It also said that IAMGOLD (TSX:IMG) (NYSE:IAG), which is IVN’s largest shareholder, is supporting the deal.

The implied equity value of the transaction, on a 100% basis, is about C$132 million, or C$104 million for the portion not owned by DPM, the parties said.

According to equity research firm Raymond James, IAMGOLD holds about 53.3 million shares of INV (~35.5% of shares outstanding), which will be converted to ~4.85M DPM shares (~2.5% of DPM shares outstanding; RJL calculation) on closing of the transaction expected after the INV shareholder meeting in July.

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