Probe Mines was acquired today by one of the largest gold producers in the industry, Goldcorp.
The price: A $526 million payout to Probe shareholders.
This deal is interesting as it could spark M&A activity within the gold space. Probe Mines was an exploration company with only a resource estimate!
$526 million for only 4 million ounces of gold in the ground. In addition, the company also gets to keep their cash balance of 15 million in the bank to use to explore their other mineral projects via a spinco where these projects will be allocated to as the existing shareholders get free shares.
"Goldcorp will acquire all of the outstanding shares of Probe under a plan of arrangement for consideration of 0.1755 of a Goldcorp share per Probe share, equivalent to C$5.00 per Probe share, based on the closing price of Goldcorp shares on the TSX on January 16, 2015, and total consideration of C$526 million. In addition, shareholders of Probe will receive shares in a newly formed company ("New Probe")"
http://www.probemines.com/s/News_Releases.asp?ReportID=691530&_Type=News-Releases&_Title=Probe-Mines-to-be-Acquired-by-Goldcorp
Also, with the current value of the Canadian dollar at .84 cents, the actually price of gold is over $1500 an ounce for Canadian production value.
In connection to Copper Fox, we are a late-staged resource development company far more advanced than Probe Mines. It would have been interesting to know what Goldcorp would have paid us for our Schaft Creek deposit! Seeing they paid 526 million for the "Borden Gold Asset" (with no PEA,PFS,BFS) I wonder what value Schaft Creek (which has all the economic studies) would obtain from majors? Knowing we have 10 million ounce gold (M,I & F), plus silver and Copper with Moly I assume a very pretty price.
Copper Fox will probably do what Probe management announced:
Buyout of main asset of X value and shareholders to receive free shares of a newly formed entity that is well-funded and financed with current projects being allocated to the new company (in our case Carmax-Eaglehead, Van Dyke).
