The Globe and Mail reports in its Wednesday, June 15, edition that Canaccord Genuity analyst Michael Fairbairn views Orla Mining's friendly share and cash deal for Gold Standard Ventures "favourably." The Globe's David Leeder writes in the Eye On Equities column that Orla has entered into a definitive agreement with Gold Standard, which is focused on its 100-per-cent-owned South Railroad project in Nevada. It will pay 0.1193 an Orla share per Gold Standard share as well as 0.01 cent in cash.
Pointing to the "merits of the transaction," Mr. Fairbairn predicted the deal will go through and sees the probability of an interloper as "low."
With that view, he lowered his rating for shares of Vancouver-based Gold Standard to "hold" from "speculative buy" with a 66-cent share target, down from $1. Analysts on average target Gold Standard shares at $1.05. Mr. Fairbairn says in a note: "For Gold Standard shareholders, the acquisition provides an immediate upfront premium, eliminates future financing risks which may have resulted in significant shareholder dilution, and leverages Orla's strong leadership and construction team, which recently delivered the Camino Rojo Oxide mine on schedule and under budget."
© 2024 Canjex Publishing Ltd. All rights reserved.