German Chancellor defends planned lithium deal with Serbia
Mercedes-Benz and Stellantis are currently in discussions with Serbia’s government to invest in the country.
Peruvian precious metals miner Hochschild (LON:HOC) is acquiring Canadian Andina Minerals (TSX-V:ASM), after the junior gold miner agreed late Thursday to a friendly takeover.
The cash deal, valued in nearly $105 million or 80¢ a share, represents double the Canadian miner’s closing price on Wednesday, though it came after a year of poor stock performance for the junior. Andina’s shares traded above the offer price early in 2012, and were above $5 back in 2007 and early 2008.
The junior CEO, George Bee, said that cost inflation is a main concern in the industry, which dragged down the stock price. There were also worries about dilution as the Toronto-based company looked at how to finance its Volcan gold project in Chile.
“After reviewing the alternatives available to our company, we believe that the offer is the best option for Andina shareholders,” he said in a statement.
The Volcan project holds 6.6 million ounces of gold reserves. Capital costs were estimated at $547 million early 2011, though other firms have posted substantial cost inflation since then.
Besides Volcan, Andina has joint ventures on two early-stage projects in Chile, one of which is a partnership with Hochschild.
Comments
Carlos J. Cenzano
Congratulations for the new edition!