May 12, 2023
Manitou Gold Inc. (TSXV:MTU, Not Rated, Timothy Lee) announced that it had received shareholder approval for its previously announced (read more) all-stock acquisition by Alamos Gold Inc. (TSX:AGI, Not Rated). Under the terms of the plan of arrangement, Manitou shareholders will receive one Alamos share for each 283.68 Manitou shares held. Alamos already owns ~19% of the shares of Manitou. At the time of the original announcement of the deal on Feb 28, 2023, this represented a value of C$0.05 per Manitou share, but we note that Alamos’ shares have appreciated in price, thus the deal now represents C$0.063/sh. We view this acquisition as positive for Manitou shareholders, as Alamos is a logical acquirer, and this gives Manitou shareholders a significant premium over the C$0.025/sh closing price at the time of the announcement. Read more
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Manitou Gold Inc. – TSXV:MTU
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