New Placer Dome Gold Corp. (TSXV:NGLD) – Definitive Agreement Spells Out Hefty Premium for NGLD
New Placer Dome (NGLD) announced that it has entered into a definitive agreement to be acquired by Copaur Minerals Inc. (TSXV:CPAU, Not Rated) in an all-share deal, per which Copaur would issue 0.1182 common shares for each share of NGLD held. The deal values NGLD at a 64% premium to its closing price prior to the announcement of the definitive agreement ($0.115/sh). We maintain our view that this transaction is positive for NGLD shareholders given the premium being offered and the creation of a larger, well-funded NewCo with assets in both B.C. and Nevada. Although shareholders may not realize our full valuation, we note that they may become invested in NewCo, which could ultimately see some of this value realized as projects are advanced. We continue to believe that NGLD’s portfolio of assets in the tier-one jurisdiction of Nevada offers excellent potential for resource expansion and new discoveries.