Nordgold to make offer for Northquest, values company at $20 mln
MOSCOW. Dec 16 (Interfax) - Russian gold miner Nordgold intends to make an offer to acquire all outstanding shares in Canadian geological exploration company Northquest.
Nordgold, which currently has a 52.3% stake in Northquest, will offer 0.253 Canadian dollars per share, a price that values the entire company at approximately $20 million.
Northquest owns the Pistol Bay Gold Project, a high grade exploration project located in Nunavut Territory, northern Canada, on the west coast of Hudson Bay.
Nordgold reached agreement to acquire a Northquest stake in June 2014, acquiring 22.6% of shares and warrants for 2.5 million Canadian dollars (about $2.3 million). Soon after, it boosted its stake to 23.7% and, in May 2015, to 42.9%.
Nordgold is the former gold producing subdivision of Severstal's resource division, and it was spun off in January 2012. Steel magnate Alexei Mordashov is Nordgold's principal beneficiary with a stake of 90.53%, and the free float is around 9%.
The company operates nine active mines in four countries - Russia, Kazakhstan, Guinea, and Burkina Faso - as well as a number of projects at the development and exploration stages.