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Canada-based New Gold (TSX:NGD) said on Monday it plans to buy exploration company Bayfield Ventures Corp (TSX-V:BYV) for C$16.6 million (US$14.67m) to expand its land holdings in the Rainy River mining district in northwestern Ontario.
Bayfield’s assets include a 100% interest in three mineral properties, totalling 10 square kilometres, located adjacent to New Gold’s Rainy River project.
On Friday, two silver miners Scorpio Mining (TSX: SPM) and U.S. Silver & Gold (TSX: USA) also announced plans to merge, creating a C$65 million combined entity with a bigger portfolio of silver assets in the Americas.
The deals at values substantially below historical highs reflect the challenges facing the sector, as gold prices have dropped over 30%, and silver has plunged more than 50% over the last two years.
Details of the transaction at New Gold’s press release.
