Wawa-area gold miner Wesdome is quadrupling the size of its land position in northeastern Ontario by acquiring its next-door neighbour.
The Toronto mid-tier producer is acquiring Angus Gold’s Golden Sky exploration project, which is adjacent to its Eagle River mine, in an all-share transaction valued at $40 million.
In an April 7 news release, Wesdome said it’s entered into a definitive arrangement to acquired all of the common shares of Angus it doesn’t currently own. Wesdome owns 10.4 per cent of Angus’ shares.
The deal still requires court approval and two-thirds support from Angus shareholders. A special meeting for them to vote is expected to be held in June.
Wesdome said this acquisition turns Eagle River into a legitimate mining camp in a bona fide gold jurisdiction.
Eagle River, located 50 kilometres west of Wawa, has been a consistent producer on the Mishibishu greenstone belt since 1996.
In consolidating two properties into one, encompassing some 400 square kilometres, Wesdome views this is an opportunity to accelerate exploration and development.
For Wesdome and CEO Anthea Bath, Golden Sky represents a target-rich environment that presents an opportunity to expand its resource base at Eagle River.
Angus has spent more than $20 million on exploration at Golden Sky since 2020, generating a slew of targets while confirming its geological continuity with Eagle River. Some recent high-grade drill hits, Wesdome said, underscore the potential for discovering new gold zones and outlining new resources.
“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 Bath in a statement.
“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,” added Bath.
Bath said the timing was right for Wesdome to make the move, to add value to the property and eventually bring it into production.
She credited Angus Gold CEO Breanne Beh and her team for their “excellent work” on the exploration side over the years, which “resulted in multiple discoveries and laid the groundwork for further exploration.”
In the release, Beh replied that her company is excited to have reached an agreement with Wesdome.
“Since 2020, through a series of property acquisitions, we consolidated a district-scale land package, completed over 40,000 metres of drilling, and made significant gold discoveries. These accomplishments would not have been possible without the support of our committed stakeholders. We believe this transaction delivers immediate value to our shareholders and provides the opportunity to benefit from a well-established and well-financed gold producer.”
