Impact: Mildly Positive
Gran Colombia (GCM) announced the proposed acquisition of Gold X Mining (TSXV:GLDX, Not Rated) in an all-share deal that would value GLDX at C$4.10/sh or ~C$315M on a 100% and fully diluted ITM basis. We view the transaction positively as it would provide GCM with a long-lived asset with excellent exploration potential in a familiar geographic region. Additionally, with the significant FCF that Segovia is generating (~$129M in 2021E) and GCM’s strong balance sheet we believe the combined company would be in a strong starting position to execute on its Latin American growth vision.
