Global gold M&A heats up in October

October has brought a slew of gold M&A activity in various parts of the world.

On October 25, Horizon Minerals (ASX:HRZ) and Poseidon Nickel (ASX:POS,OTC Pink:PSDNF) announced plans to establish a mid-tier gold producer centered on the Kalgoorlie-Coolgardie region in Western Australia.

Through a scheme implementation deed, Horizon will acquire all of Poseidon’s shares, consolidating Horizon’s gold assets with Poseidon’s Black Swan processing infrastructure. The new entity aims to streamline production and resource integration in the area, a move that aligns with industry expectations for more regional consolidation.

Also this month, Aurum Resources (ASX:AUE) and Mako Gold (ASX:MKG) announced a deal to unite their flagship Napié and Boundiali gold projects in Côte d’Ivoire through off-market takeover bids.

The new company, with an anticipated market cap of AU$90 million and AU$20 million in cash, will focus on advancing West African projects to bolster regional gold exploration and development.

In Canada, NexGold Mining (TSXV:NEXG,OTCQX:NXGCF) and Signal Gold (TSX:SGNL,OTCQB:SGNLF) said on October 10 that they plan to merge to create a near-term gold producer focused on Canadian assets.

The merger will combine NexGold’s Goliath gold complex in Ontario with Signal’s Goldboro project in Nova Scotia, bringing together approximately 4.7 million ounces of measured and indicated gold resources, and an additional 1.3 million ounces in inferred resources. The new entity aims to produce over 200,000 ounces of gold per year.

In a more recent transaction, Aura Minerals (TSX:ORA,OTCQX:ORAAF) announced a US$74.3 million acquisition of Bluestone Resources (TSXV:BSR,OTCQB:BBSRF), including Bluestone’s Cerro Blanco project in Guatemala.

Cerro Blanco, a high-grade deposit located in Jutiapa, is expected to become a flagship asset with an estimated 14 year mine life and peak production projected at 347,000 ounces of gold per year.

More M&A to come in the gold sector?

Heading into the end of 2024, will the high level of deals in the gold space continue?

"These past 90 days have been nothing short of insane," Matt Geiger, managing partner at MJG Capital Fund, told the Investing News Network when asked about recent M&A activity in the resource sector.

"I would say this is probably the strongest M&A window we've seen in well over a decade," he added, pointing to numerous billion-dollar transactions, as well as smaller-scale tie ups. In his view, it isn't over yet.

"I think this has been a tremendously active window, and I would actually argue there is more to come," Geiger said, noting that talks initiated at the Precious Metals Summit in Beaver Creek, Colorado, probably have yet to close.

He anticipates more activity in the junior royalty company space moving forward.