Top Stories This Week: Gold M&A Spree Continues, Tesla Mulls Bid for Lithium Company

Hecla to snap up Yukon-focused explorer ATAC

This week also brought even more M&A activity in the gold space. On Tuesday (February 21), ATAC Resources (TSXV:ATC,OTCQB:ATADF) signed a non-binding letter of intent to be acquired by Hecla Mining Company (NYSE:HL).

Under the terms of the deal, Hecla would acquire all of the Yukon-focused explorer's issued and outstanding shares for C$0.14 per ATAC share, payable in Hecla common stock. Hecla would take control of ATAC's Rackla and Connaught properties, while the remainder of its assets would be spun out into a new copper company in which ATAC shareholders would receive shares.

In January, ATAC received an acquisition offer from Victoria Gold (TSX:VGCX,OTC Pink:VITFF), but ATAC ultimately determined that it didn't fully capture the company's value. Victoria Gold's proposal was for C$0.12 per ATAC share.

Hecla and ATAC now have until March 15 to sign a definitive and binding agreement. ATAC's Graham Downs has spoken positively about the deal, saying that he sees Rackla as complementary to Hecla's Keno Hill property.

"We believe the Potential Transaction will provide significant value to ATAC shareholders. Hecla is an ideal acquirer for the Rackla Gold Property, given its adjacent Keno Hill mining project and demonstrated commitment to the Yukon and its communities" — Graham Downs, ATAC Resources

Rumors swirl around Tesla and Sigma Lithium

Gold isn't the only sector where M&A is in focus. In the lithium space, talk is circulating about whether Elon Musk's Tesla (NASDAQ:TSLA) may make a bid for Sigma Lithium (TSXV:SGML,NASDAQ:SGML).

According to Bloomberg, Sigma is just one of the lithium companies the electric vehicle maker is considering acquiring, although no others have been named, and neither Tesla nor Sigma has commented on the rumors.

That said, this isn't the first time Musk has made comments about Tesla entering the lithium business. In April 2022, he commented on Twitter that the company might have to get into mining and refining.

Sigma's share price has performed positively this week in reaction to speculation about a possible deal with Tesla, but for now investors will have to wait and see whether that comes to fruition.