Wesdome Gold Mines (TSX: WDO; US-OTC: WDOFF) is acquiring junior explorer Angus Gold (TSX-V: GUS; US-OTC: ANGVF) in a cash-and-share deal valued at approximately $40 million (US$28 million), expanding its footprint in Ontario’s Mishibishu Lake greenstone belt.
The transaction disclosed on Monday will quadruple Wesdome’s land position at its Eagle River operation, creating a 400-sq.-km contiguous land package. Wesdome already owns 6.3 million Angus shares, a 10.4% stake in the target company.
Under the terms of the agreement, Angus shareholders will receive 62¢ in cash and 0.0096 of a Wesdome share for each Angus share, for a total value of 77¢ per share. The offer represents a 59% premium to Angus’ 20-day volume-weighted average price.
In a statement Monday, Wesdome CEO Anthea Bath called the acquisition a “highly logical and strategic tuck-in,” emphasizing that it strengthens the company’s exploration potential between the Eagle River mine and mill.
“It reinforces our belief in the geological potential of the Mishibishu Lake greenstone belt, aligns with our focus on regional consolidation, and positions us to deliver sustainable, long-term growth supported by our strong balance sheet and existing infrastructure,” Bath said.
Advancing targets
Shares in Wesdome gaind 2.9% on Monday morning in Toronto to $16.10 apiece giving the company a market value of $2.35 billion. They’re traded in a 52-week range of $9.89 to $17.24. Angus Gold stock surged 64% to 74¢, the highest since August 2023, for a market value of $44 million.
Since 2020, Angus has invested more than $20 million in exploration, identifying multiple targets and confirming geological continuity with Eagle River. Wesdome plans to continue advancing these targets, with a 2025 focus on high-priority zones including the Cameron Lake BIF and Eagle River Splay.
In the same statement, Angus president and CEO Breanne Beh described the deal as a validation of her team’s work, noting achievements such as consolidating the Golden Sky property, completing over 40,000 metres of drilling, and making several gold discoveries. She said the agreement offers shareholders immediate value and exposure to a well-established, well-financed gold producer.
Eagle River consists of two gold mines: the Eagle underground mine, in production since 1995; and the Mishi open pit, in production since 2002. The operation generated 94,561 oz. of gold in 2024.
The transaction is subject to the approval by at least two-thirds of Angus shareholders at a special meeting expected in June. Closing is anticipated in the second quarter.
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