- Lake Shore Gold (NYSEMKT:LSG) +9.3% premarket after agreeing to be acquired by Tahoe Resources (TAHO) in an all-stock deal valued at ~C$945M.
- TAHO will pay 0.1467 of its stock for each LSG share, which works out to C$1.71, a 14.8% premium to LSG shares, based on both stocks' Friday close; the companies say the deal has an implied equity value of C$945M, assuming the conversion of some debentures.
- The deal adds LSG's low-cost gold Timmins West and Bell Creek mines in Timmins, Ontario, to TAHO's portfolio, which already includes the Escobal mine in Guatemala and two mines in Peru.
- The combined company is expected to produce 370K-430K oz. of gold in 2016 at total cash costs of $675-$725/oz. and all-in costs of $950-$1,000/oz.
- TAHO -2.7% premarket.
Tahoe Resources to buy Lake Shore Gold for C$945M in all-stock deal
This was corrected on 06/08/2022 at 1:12 AM. The original post incorrectly called this acquisition a cash and stock deal. It is an all-stock deal valued at ~C$945M when assuming conversion of some debentures. Seeking Alpha regrets the error.