Categories: General Market Commentary / Precious Metals
Topics: General Market Commentary / General Precious Metals

Mariana Resources Bought Out: Shares surge over 60%

 

Mariana Resources (TSX-V: MARL) (OTC: MRLDF) the Turkey-focused mining exploration specialist, has agreed to be taken over by Sandstorm Gold in a deal that values the business at almost £167mln, representing an 84% premium on last night’s valuation.

Canada-listed Sandstorm Gold, which already owns 7% of the AIM-listed company, is offering its own paper as well as 28.75p per share in cash.

Here are the highlights from this morning’s release:

Terms of the Combination
·         Under the terms of the Combination, Scheme Shareholders will receive 0.2573 New Sandstorm Shares and 28.75 pence in cash for each Scheme Share held at the Scheme Record Time.
·         Based on the closing price of US$4.04 per Sandstorm Share on NYSE MKT and a currency exchange rate of £0.7788 per US$, on 25 April 2017 (being the last Business Day before the date of this Announcement), the terms of the Combination represent:
·                a value of approximately 109.71 pence per Mariana Share;
·                a value of approximately £166.85 million for Mariana`s fully diluted ordinary share capital;
·                a premium of approximately 84.38 per cent. to the closing price of 59.5 pence per Mariana Share on AIM on 25 April 2017 (being the last Business Day before the date of this Announcement); and
·                a premium of approximately 88.30 per cent. to the 20-day VWAP per Mariana Share of 62.84 pence on AIM to 25 April 2017 (being the last Business Day before the date of this Announcement), based on the 20-day VWAP per Sandstorm Share of 348.16 pence on NYSE MKT to the same date and utilising daily close composite exchange rates.
·         If, after the date of this Announcement, any dividend and/or other distribution is announced, declared or paid in respect of the Mariana Shares, Sandstorm reserves the right to reduce the Consideration by an amount up to the amount of such dividend and/or distribution so announced, declared or paid.

Shares are up over 60% today. Congrats to the team and shareholders of Mariana Resources.