St. Barbara Acquiring Atlantic Gold
Atlantic Goldís Moose River operations include the Touquoy producing open-pit gold mine and three other pits in development: Beaver Dam, Fifteen Mile Stream and Cochrane Hill. Moose River declared commercial production from Touquoy in March 2018 and produced 91,000 oz during the year. Moose River has mineral resources of 2.4 million oz inclusive of mineral reserves of 1.9 million oz. Production is forecast to increase to more than 200,000 oz/y as the other three pits are developed.
St. Barbara will acquire 100% of all outstanding Atlantic shares at an all-cash offer price of C$2.90 per share, implying a total equity value of C$722 million and a total enterprise value of C$802 million. The transaction excludes Atlanticís 36% interest in Velocity Minerals, which will be spun out to existing Atlantic shareholders following completion of the transaction.
Atlantic Chairman and CEO Steven Dean will be invited to join the St. Barbara Board following completion of the transaction. St. Barbara is seeking to retain key Atlantic executives, who have and will continue to play roles in the successful development of Moose River. Further, St. Barbara intends to retain the current operating team, which has a track record of successful project development and operational delivery.