Mergers On Deal Street

Gold Investing News reports several merging spree among gold companies.

September began with South Africa’s Competition Commission giving the green signal to the merger of the Buffelsfontein Gold Mine (BGM) and the Tau Lekoa mine, inclusive of the Weltevreden and Goedgenoeg properties, gold and uranium producer Simmer & Jack Mines has said.

South African gold major AngloGold Ashanti agreed to sell the Tau Lekoa mine to Simmers for R600-million.

Cashed-up goldminer Catalpa Resources is setting its sights on further acquisitions after the merger with Lion Selection. Catalpa shares have leapt about 600 per cent since November, when the share price languished at 2¢. After the announced merger, shares are trading at 14¢, giving the goldminer a market capitalisation of about $164 million. The merger is expected to be completed in November.

With $20 million cash in the bank, the Perth-based company said that it is ”looking around” at opportunities locally and overseas to grow Catalpa into Australia’s next mid-tier gold producer.

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