In June 2015 Oban Mining (OBM: TSX), with a market cap of north of $60 million, acquired five juniors in the region and has taken out several more to date. Oban is focused on a clear strategy of consolidation in the Abitibi Greenstone Belt and plans to become an intermediate producer within the near future.
Oban’s mandate is to drill test targets rapidly, advance or divest the rest. Oban is well financed with approximately $73 million in cash, cash equivalents and marketable securities.
The new entity will have a strong production growth profile and is expected to produce 260-310k oz gold in 2016 with attractive cash costs between US$600-690/oz gold. Over 50% increase in proven & probable gold reserves to a combined 2.3m oz Au, and over 100% increase in measured & indicated gold resources, supporting long-term sustainable production profile.
Previous Abitibi Greenstone Belt 2015 acquisition activity:
• February 2015: Centerra Gold and Premier Gold Mines became 50/50 partners on Premier’s Trans-Canada Property in Ontario.
• March 2015: Goldcorp acquired Probe Mines for their deposit in Ontario.
• April 2015: Alamos Gold acquired Aurico Gold through a merger to gain exposure to its Young-Davidson Mine in Ontario
• April 2015: Yamana acquired Mega Precious Metals for their Monument Bay Gold Project in Manitoba.
• October 2015: Alamos just bought out Carlisle Goldfields for a premium of 62% to Carlisle’s closing price on October 14, 2015, and a 117% premium to its 30-day volume-weighted average price