I’ve long speculated that Almaden Minerals will be bought out. I’ve speculated as to who but despite many confidential agreements and visits to the property by mid-tiers and majors alike, a suitor has yet to emerge.
On June 1, 2017 Almaden Minerals (TSX: AMM)(NYSE: AAU) announced it had closed a bought deal private placement for total proceeds of $17.2 million.
The financing was co-led by Sprott Capital Partners and Cormark Securities Inc. on behalf of a syndicate of underwriters which included PI Financial Corporation and National Bank Financial Inc.
Terms were fairly straightforward. The company issued a total of 9,857,800 units at $1.75 per unit. Each unit consisting of one share and a half-warrant at $2.45 good until June 1, 2020.
The most interesting part of the release was that Coeur Mining acquired 2,856,000 units of the offering.
Coeur already owns the Palmarejo gold and silver mine complex in Mexico.
Almaden owns one of the only truly poly-metallic deposits in Mexico, the gold-silver Ixtaca deposit which forms part of the Tuligtic project in Puebla State, Mexico.
The project boasts excellent infrastructure, broad community support and excellent exploration potential.
Potential that Almaden CEO Morgan Poliquin is sure to focus on now that the company is well cashed up with over $27 million in the bank.
That $27 million will get them to a bankable feasibility study by the end of the year. I doubt the company will be around by then.
Who might take them out just got a lot clearer. At what price will depend on how long it takes for the check to be written.
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