Alberta to introduce ‘modern’ coal policy, including ban on new open-pit projects
The new policy will not affect those qualified as "advanced coal projects" such as the controversial Grassy Mountain mine.
Australia’s Gold Road Resources (ASX: GOR) confirmed on Monday rumours about its intention to acquire a stake in Canada’s Greenstone Gold Mines, a 60-40 partnership between Equinox Gold (TSX: EQX) and Orion Resource Partners
The Perth-based gold producer said that while it is participating in a stake sale process being conducted by Orion, no definitive agreement has been finalized so far.
“Gold Road continues to evaluate strategic opportunities and will only pursue acquisitions if it is in the best interests of its shareholders,” managing director and chief executive Duncan Gibbs said in the statement.
According to The Australian, Orion is seeking a A$1 billion-plus (about $648 million) valuation for Greenstone and Gold Road Resources. Its primary asset is a non-operating 50% in the Gruyere gold mine, and it may need to raise funds to pay for the potential stake acquisition.
Gold Road’s shares dropped 6.6% to A$1.70 by the end of Monday’s trading, surpassing the losses seen by other gold companies. This movement in the stock price suggests that investors are, in fact, expecting a fundraising effort.
Gold Road had A$143.8 million in cash and A$465 million in investments by the end of 2023, with a significant portion represented by its 19.9% stake in gold company De Grey Mining (ASX: DEG).
Shares in De Grey also fell by 4.7% on Monday, further suggesting that some market players believe Gold Road may sell its stake in De Grey to generate the necessary funds to acquire Orion’s 40% in Greenstone Gold Mines.
Greenstone owns a portfolio of pre-production gold claims in Ontario, including its namesake flagship open-pit gold project. The mine, scheduled to begin production in May, is expected to produce approximately 400,000 ounces of gold per year.
