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Friday, Apr 18, 2025
Mugglehead Investment Magazine
Alternative investment news based in Vancouver, B.C.
Wesdome Gold Mines inks $40M acquisition deal with Angus Gold
Wesdome Gold Mines inks $40M acquisition deal with Angus Gold
The production at Eagle River. Image via Wesdome.

Gold

Wesdome Gold Mines inks $40M acquisition deal with Angus Gold

Wesdome has enhanced its greenfield exploration pipeline across the Eagle River district

Wesdome Gold Mines Ltd. (TSE: WDO) (OTCMKTS: WDOFF) will acquire junior explorer, Angus Gold Inc. (CVE: GUS) (OTCMKTS: ANGVF), in a mixed cash and share deal worth approximately USD$40million.

Announced on Monday, the deal expands Wesdome’s land position considerably at its Eagle River operation. It also creates a 400 square kilometer land package on the Mishibishi Lake greenstone belt in Ontario.

This expanded footprint hosts multiple exploration targets and a variety of mineralization styles.

With this consolidation, Wesdome has enhanced its greenfield exploration pipeline across the Eagle River district.

The integration brings together at least three key mineralized trends. Furthermore, these include the Eagle River Splay and the Cameron Lake banded iron formation (BIF).

Recent drilling results show the potential for new mineralized discoveries and resource expansion. A few of these results include 48.7 grams per tonne gold over 1.5 metres at the Splay.

Wesdome remains focused on advancing its high-potential asset base in Ontario and Québec, two of the world’s leading mining jurisdictions.

The offer provides Angus shareholders with an attractive premium, validating the team’s efforts over the past five years. The cash component makes up 80 per cent of the total offer price, delivering a strong and immediate return.

Read more: Calibre Mining prepares for special shareholder meeting for Equinox merger

Read more: Equinox Gold acquires Calibre Mining for $2.6B

Acquisition is part of an Ontario-based trend

Wesdome already holds 6.3 million shares and 3.15 million warrants in Angus. This translates to a 10.4 per cent stake and a 14.9 per cent stake on a partially diluted basis.

Under the agreement, Wesdome will acquire each Angus share it does not already own for $0.62 in cash and 0.0096 of a Wesdome share, for a total value of $0.77 per Angus share based on Wesdome’s April 4, 2025 closing price.

“This is a highly logical and strategic tuck-in transaction that brings together a contiguous land package between the Eagle River mine and mill, enhancing our ability to unlock value through the drill bit,” said Anthea Bath, president and CEO of Wesdome.

“It reinforces our belief in the geological potential of the Mishibishu Lake greenstone belt, aligns with our focus on regional consolidation, and positions us to deliver sustainable, long-term growth supported by our strong balance sheet and existing infrastructure.”

The acquisition of Angus by Wesdome further is part of the growing consolidation trend within the Ontario gold sector.

This move aligns with broader industry shifts, where companies are strategically expanding their land positions and enhancing their exploration capabilities.

Much like the recent mergers and acquisitions seen with Gold Fields Ltd (NYSE: GFI) and Osisko Mining, Orla Mining‘s (TSE: OLA) (NYSEAMERICAN: ORLA) purchase of Musselwhite, and merger between Equinox Gold Corp. (TSE: EQX) (NYSE American: EQX) and Calibre Mining Corp. (TSE: CXB) (OTCMKTS: CXBMF), Wesdome’s acquisition strengthens its ability to capitalize on Ontario’s rich geological potential.

These actions collectively position Ontario as a premier hub for sustained, long-term gold production and exploration.

Calibre Mining is a sponsor of Mugglehead news coverage

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