The Financial Post reports in its Thursday edition that First Mining Finance (31.5 cents) chief executive officer Keith Neumeyer is snapping up promising assets.
The Post's Peter Koven writes that First Mining unveiled a three-way deal this week wherein it will buy Gold Canyon Resources (20.5 cents) and PC Gold (5.5 cents) for a total of about $66-million in stock.
This comes less than two months after First Mining acquired Coastal Gold, its first acquisition.
First Mining only went public in April, but it sees this as the ideal time to buy junior mining assets on the cheap. Mr. Koven says juniors are suffering through their worst bear market since the Bre-X crisis because of sinking commodity prices and a near-total lack of financing options. Gold Canyon and PC Gold's flagship assets are both in Northwestern Ontario.
First Mining president Pat Donnelly says: "We don't want the market to turn around soon, because we really want to load up on assets. And so the longer this bear market continues, the better for us."
When market conditions improve, First Mining plans to strike deals with third parties that would move the projects into production. First Mining would maintain an interest in the properties.
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