Read the full article here: http://bit.ly/16ZqOHx
Legal experts have countered that there are myriad deals brewing beneath the surface in Canada’s mining sector, despite a belief that mergers and acquisitions in the industry are heading towards a record low.
According to research from PricewaterhouseCoopers LLC, 649 mining M&A deals took place in the first six months of 2013, a drop of 31 per cent from the same time period the year before. This has been attributed in part to cautious company leaders, unwilling to make the same mistakes in relation to deals that cost some of their peers their jobs.
M&A activity looked set to remain slow for the duration of this year as the second half began, but an uptick was noticed around six weeks ago. The reason behind this new interest in M&A across the mining sector is pure and simple - opportunity. Miners are seeing acquisitions as a viable option once more thanks to stock prices which are sitting at record lows, giving them the opportunity to snap up quality development assets at major discounts – a rare thing indeed.
It is believed that M&A deals will really start to pick up once commodity prices have stabilized – something which is already starting to happen. In turn, mining stock valuations will improve, which will help to reassure jittery CEOs and push activity higher.
Major deals of the last few months are an indication of things to come. Lundin Mining Corp. and Capstone Mining Corp. both purchased non-core assets from senior firms, while Alamos Gold Inc and New Gold Inc. bought up development companies in the light of cheap valuations. In terms of mergers, Fission Uranium Corp. and Alpha Minerals Inc. merged in a deal just last month.
Kevin Thomson of Davies Ward Phillips & Vineberg LLP in Toronto hinted to National Post that all the signs of a return to the previous strong M&A activity in the sector were in place, telling the news source: “The mining space in Canada is one of the most entrepreneurial groups in the world. They won’t sit on the sidelines forever.”
About Merrill DataSite
Merrill DataSite is a secure virtual data room (VDR) solution that optimises the due diligence process by providing a highly efficient and secure method for sharing key business information between multiple parties. Merrill DataSite provides unlimited access for users worldwide, as well as real-time activity reports, site-wide search at the document level, enhanced communications through the Q&A feature and superior project management service - all of which help reduce transaction time and expense. Merrill DataSite’s multilingual support staff is available from anywhere in the world, 24/7, and can have your VDR up and running with thousands of pages loaded within 24 hours or less.
With its deep roots in transaction and compliance services, Merrill Corporation has a cultural, organisation-wide discipline in the management and processing of confidential content. Merrill DataSite is the first VDR provider to understand customer and industry needs by earning an ISO/IEC 27001:2005 certificate of registration – the highest standard for information security – and is currently the world’s only VDR certified for operations in the Europe, United States and Asia.
As the leading provider of VDR solutions, Merrill DataSite has empowered more than two million unique visitors to perform electronic due diligence on thousands of transactions totalling trillions of dollars in asset value. Merrill DataSite VDR solution has become an essential tool in an efficient and legally defensible process for completing multiple types of financial transactions.
For more information, please contact Merrill DataSite: Tel: 1-866-399-3770;
Email: info@datasite.com; Web: http://www.datasite.com
Read the full article here:
http://www.datasite.com/canadian-mining-mergers-acquisitions-slump-primed-for-turnaround116.htm
Follow us on Twitter: @merrilldatasite
Legal experts have countered that there are myriad deals brewing beneath the surface in Canada’s mining sector, despite a belief that mergers and acquisitions in the industry are heading towards a record low.
According to research from PricewaterhouseCoopers LLC, 649 mining M&A deals took place in the first six months of 2013, a drop of 31 per cent from the same time period the year before. This has been attributed in part to cautious company leaders, unwilling to make the same mistakes in relation to deals that cost some of their peers their jobs.
M&A activity looked set to remain slow for the duration of this year as the second half began, but an uptick was noticed around six weeks ago. The reason behind this new interest in M&A across the mining sector is pure and simple - opportunity. Miners are seeing acquisitions as a viable option once more thanks to stock prices which are sitting at record lows, giving them the opportunity to snap up quality development assets at major discounts – a rare thing indeed.
It is believed that M&A deals will really start to pick up once commodity prices have stabilized – something which is already starting to happen. In turn, mining stock valuations will improve, which will help to reassure jittery CEOs and push activity higher.
Major deals of the last few months are an indication of things to come. Lundin Mining Corp. and Capstone Mining Corp. both purchased non-core assets from senior firms, while Alamos Gold Inc and New Gold Inc. bought up development companies in the light of cheap valuations. In terms of mergers, Fission Uranium Corp. and Alpha Minerals Inc. merged in a deal just last month.
Kevin Thomson of Davies Ward Phillips & Vineberg LLP in Toronto hinted to National Post that all the signs of a return to the previous strong M&A activity in the sector were in place, telling the news source: “The mining space in Canada is one of the most entrepreneurial groups in the world. They won’t sit on the sidelines forever.”
About Merrill DataSite
Merrill DataSite is a secure virtual data room (VDR) solution that optimises the due diligence process by providing a highly efficient and secure method for sharing key business information between multiple parties. Merrill DataSite provides unlimited access for users worldwide, as well as real-time activity reports, site-wide search at the document level, enhanced communications through the Q&A feature and superior project management service - all of which help reduce transaction time and expense. Merrill DataSite’s multilingual support staff is available from anywhere in the world, 24/7, and can have your VDR up and running with thousands of pages loaded within 24 hours or less.
With its deep roots in transaction and compliance services, Merrill Corporation has a cultural, organisation-wide discipline in the management and processing of confidential content. Merrill DataSite is the first VDR provider to understand customer and industry needs by earning an ISO/IEC 27001:2005 certificate of registration – the highest standard for information security – and is currently the world’s only VDR certified for operations in the Europe, United States and Asia.
As the leading provider of VDR solutions, Merrill DataSite has empowered more than two million unique visitors to perform electronic due diligence on thousands of transactions totalling trillions of dollars in asset value. Merrill DataSite VDR solution has become an essential tool in an efficient and legally defensible process for completing multiple types of financial transactions.
For more information, please contact Merrill DataSite: Tel: 1-866-399-3770;
Email: info@datasite.com; Web: http://www.datasite.com
Read the full article here:
http://www.datasite.com/canadian-mining-mergers-acquisitions-slump-primed-for-turnaround116.htm
Follow us on Twitter: @merrilldatasite
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