Yesterday we got the news that the Australian giant Newcrest Mining is acquiring Pretium Resources in a deal valued at C$3.5 B on a fully diluted basis. This was a 23% and 29% premium to the closing price and the 20-day VWAP, respectively.
Pretium Resources owns the Brucejack gold mine which is located in the Golden Triangle of British Columbia. With this acquisition Newcrest Mining is giving thumbs up to British Columbia (“BC”) as a mining jurisdiction and cements it foothold after previously having acquired 70% of the Red Chris mine in 2019 from Imperial Metals and having acquired the GJ Copper-Gold Property from Skeena Resources last year. Both of these assets are also located in the Golden Triangle of British Columbia, Canada.
It appears that M&A is heating up overall with this multi-billion dollar deal coming shortly after the merger between Agnico Eagle and Kirkland Lake. It also appears that British Columbia is indeed seen as a prime jurisdiction for major miners. Lets not forget that Newmont Mining acquired GT Gold, which is also located in the Golden Triangle, earlier this year.
All this makes me believe that success in British Columbia for a junior is indeed worth more than most places on earth in the eyes of the large operators. Well, at least for underground operations. I do remember an old Crescat Presentation where Quinton Hennigh discussed one of their BC plays and stated that he foresaw more consolidation by majors (which turned out to be true).
The Golden Triangle (From Enduro Metal’s presentation):
On that note I own quite a few juniors that are active in the Golden Triangle and BC overall. In fact, I think BC is the jurisdiction where I have my biggest exposure overall, which is of course why I am quite happy to see a multi-billion deal taking place there. Many are juniors that I got into after watching Quinton’s presentations on them and they just happen to typically be high-grade, and primarily “underground” plays:
Golden Triangle (BC) juniors:
- Eskay Mining (ESK.V)
- (Very close to Pretium Resources)
- High-grade gold/silver
- Possibly both open put and underground
- Goliath Resources (GOT.V)
- High-grade gold/silver
- Dolly Varden Silver (DV.V)
- High grade silver
- StrikePoint Gold (SKP.V)
- High grade gold/silver
- Enduro Metals (ENDR.V)
- Gold, silver, copper
- Potential for open pit and/or underground
Other BC juniors outside the Golden Triangle
- Rokmaster Resources (RKR.V)
- High grade gold/silver + polymetallic
- Pacific Ridge Exploration (PEX.V)
- Gold/copper porphyry exploration
- Gold Mountain Mining (GMTN.V)
- High-grade gold
- Open put and probably underground operation (Recently got its MINING PERMIT!)
- Juggernaut Exploration (JUGR.V)
- High-grade gold/silver explorer
- Blackwolf Copper and Gold (BWCG.V)
- Finlay Minerals (FYL.V)
- Silver, gold & copper exploration
- Copaur Minerals (CPAU.V)
- Primary gold explorer
Note: This is not investment advice. I own shares of all companies mentioned and some are banner sponsors. Consider me biased and do your own due diligence.