GT Gold (TSXV: GTT) reached an all-time high yesterday, closing up 59.7% to C$3.21 on news of Newmont's all-cash acquisition at $3.25 per share, a 38% premium to GT's 20-day VWAP.
GT put the total equity value of the transaction at $456 million on a fully diluted basis, while Newmont put the cash consideration at $393 million.
Interestingly Newmont, which already held about 15% of the explorer focused on its Tatogga project in British Columbia's Golden Triangle, was at pains to point out it acknowledged Tahltan consent was necessary to advance the project.
In a joint statement, Tahltan Central Government (TCG) president Chad Norman Day said TCG looked forward to working with Newmont "in a respectful, meaningful and mutually beneficial way".
Separately, Discovery Harbour Resources (TSXV: DHR) jumped a similar amount, closing up 55.5% to 7c on news Australian gold major Newcrest Mining would pay up to US$31.5 million to earn 75% of its Fortuity 89 early-stage project in Nevada.
Exploration Insights's Joe Mazumdar had told Mining Journal in February gold M&A was set to take off, agreeing the industry had entered a new M&A cycle.
The developments come as the gold price is a little higher than this point yesterday, around $1,724 an ounce on the spot market.
Finally, market futures were mostly positive and copper rose almost 1% on the London Metal Exchange amid news of potential strike action looming in Chile.