Impact: Neutral to Slightly Positive
Aurion Resources confirmed that it was engaged in talks with Rupert Resources (TSX:RUP, Not Rated) regarding a potential transaction, after Rupert Resources stated in an earlier press release that “it has been unable to reach acceptable terms to acquire the full 100% of the Fingold JV in Finland”. RUP had earlier made an offer for B2Gold’s (TSX:BTO, Not Rated) 70% share in the JV for an estimated C$102.8M (read note), implying values of C$147M and C$44M for the entire JV and Aurion’s 30% interest, respectively. Aurion then chose to not exercise its ROFR to acquire the other 70% (read notable) and it now appears that negotiations for Aurion’s 30% share were unsuccessful. With this announcement, it seems that focus of Aurion’s management will remain on advancing its project portfolio, including the discoveries at Risti and on the B2 Gold JV. We don’t rule out a potential Rupert bid to acquire Aurion outright, as it probably has a line on B2Gold’s interest. However, such an outcome would have to work for Rupert, who, we believe, is looking at the project in terms of providing land to help enhance Ikkari, not because it is attracted to the JV’s Helmi or other discoveries.
.
