Oct 15 Argonaut Gold Inc said it will
buy Prodigy Gold Inc for about C$341 million ($348
million) to take control of Prodigy's Magino project in Ontario.
The offer, almost entirely in shares, works out to C$1.08
per share based on Argonaut's 20-day average share price and is
at a premium of 54 percent to Prodigy's 20-day average price,
"Magino is a highly attractive asset which has shown
continued resource growth ... which we believe will provide a
longer term production opportunity," Argonaut chief executive
Pete Dougherty said in a statement.
Prodigy shareholders will receive 0.1042 of an Argonaut Gold
share and C$0.00001 in cash per share, the companies said.
Based on Argonaut's Friday closing of C$10.48, the deal
value comes to C$320.2 million.
On the completion of the deal, about 78 percent of Argonaut
will be owned by its current shareholders and the remaining 22
percent by shareholders of Prodigy.
BMO Capital Markets is acting as the financial advisor to
Vancouver-based Prodigy was formed though the combination of
Kodiak Exploration and Golden Goose Resources, and its Magino
project contains indicated resources of 6.3 million ounces of
Indicated resources, based on detailed exploration and
testing information, are sufficient to support feasibility
The Magino mine is in the Goudreau-Lochalsh gold district of
the Wawa gold camp.