Hedge funds slash bullish wagers on gold over Trump election win
The precious metal has fallen about 8% from a record high on Oct. 31, with losses accelerating after Trump’s election victory last week.
Canadian miner McEwen Mining entered into a deal to acquire all outstanding shares of Timberline Resources that it doesn’t already own, the companies said on Tuesday.
McEwen currently owns 6.25 million Timberline shares, or around 3.3% of the company, along with 6.25 million warrants.
Excluding existing ownership, McEwen, which has operations in Nevada, Canada, Mexico and Argentina, expects to issue around 1.84 million shares on closing for a transaction value of $18.8 million.
Timberline shareholders will receive 0.01 of a share of McEwen’s common stock for each Timberline share held, representing a value of $0.102 per Timberline share, or a premium of 132%, the companies said.
Timberline Resources, a Nevada based exploration company focused on gold and copper discoveries, would be required to pay McEwen a termination fee of $400,000 if it terminates the agreement.
(By Seher Dareen; Editing by Shailesh Kuber)
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alfred piper
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alfred piper
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