Mississauga, ON -- (SBWIRE) -- 02/18/2015 -- AllPennyStocks.com Media, Inc. (http://www.AllPennyStocks.com/) announces its latest article titled "Sandstorm Gold Agrees to Acquire Gold Royalties Corp. in $5.7 Million Deal."
Companies mentioned in this article include Tahoe Resources (TSX:THO), Rio Alto Mining Ltd. (TSX:RIO), Gold Royalties Corporation (TSX-Venture:GRO) and Sandstorm Gold Ltd. (TSX:SSL)(NYSE MKT:SAND).
Article Excerpt:
Gold prices taking a downturn to end a 12-year bull run in 2013 started putting pressure on overextended miners and set the stage for a consolidation in the industry. After $10.5 billion in M&A deals in 2014, nearly $3 billion in deals have already been reported so far in 2015, including the $1.1 billion offer by Tahoe Resources (TSX:THO) to buy Rio Alto Mining Ltd. (TSX:RIO) announced last Monday.
Many analysts expect the trend to continue throughout the year in deals of all sizes. Fidelity's Joe Wickwire, who manages nearly $2 billion of assets, including the Fidelity Select Gold Portfolio, told Bloomberg in September that it "might not be a bad thing" to see the number of gold producers consolidated by about 33 percent, essentially to cleanse the industry of weakness.
On Wednesday, the latest agreement to merge miners was disclosed as Gold Royalties Corporation (TSX-Venture:GRO) struck a deal to be acquired by Sandstorm Gold Ltd. (TSX:SSL)(NYSE MKT:SAND) in an all-stock transaction. Per the deal, shareholders of GRO will receive 0.045 of a Sandstorm share for each share of Gold Royalties held. Based upon Sandstorm's closing price of $4.45 on Tuesday on the TSX, the agreement values a share of Gold Royalties at about 20 cents, which is approximately a 91% premium to shares of GRO closing price of 10.5 cents each on the Venture exchange on Tuesday. Based on Sandstorm's closing share price on February 17, 2015, the total value of the transaction would be approximately C$5.7 million.
The full version of this article can be found at:
http://www.allpennystocks.com/aps_ca/special-reports/483/sandstorm-gold-agrees-to-acquire-gold-royalties-corp-in-57-million-deal.htm
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