Gold M&A: Pantoro and Tulla Resources join forces to create a A$400m company
Nick Sundich, February 13, 2023
The gold M&A market for 2023 is officially underway with Pantoro (ASX:PNR) and Tulla Resources (ASX:TUL) agreeing to merge. But are these companies actually better off together?
No time to do stock research, but you still want to invest?
Stocks Down Under Concierge gives you timely BUY and SELL alerts on ASX-listed stocks!
With price targets, buy ranges, stop loss levels and Sell alerts too.
GET A 3-MONTH FREE TRIAL TO CONCIERGE TODAY
Pantoro and Tulla are joining forces
Both companies own 50% each of the 4.8Mo Norseman gold project in WA.
Eerily similar to the situation of Strike Energy (ASX:STX) and Warrego Energy (ASX:WGO), a deal had been been tipped for a long time due to the inefficiency of having two companies on the same project.
Today the worst kept secret was confirmed and investors were asked to chip in $75m of fresh equity. This will fund construction, transaction costs and provide general working capital.
Pantoro will own the majority of the new company – with a 51.5% stake – and the hot seat with CEO Paul Cmrlec (yes, that’s his name) heading the combined entity. The combined company is expected to have a ~$400m market capitalisation.
Is this a sign of good things to come for gold M&A?
This gold M&A deal comes a week after a US$17bn proposal by Newmont, the world’s biggest miner, to buy Newcrest Mining (ASX:NCM). This deal has not been accepted yet. Nevertheless, these deals show that it could be a better year for gold M&A in 2023. Last year, only US$2.5bn of deals were completed, down 86% from 2021. But with US$120bn in gold M&A deals completed over the last decade, investors can be optimistic that the market has capacity to bounce back with a vengeance.
Stocks Down Under Concierge gives you timely BUY and SELL alerts on ASX-listed stocks!
With price targets, buy ranges, stop loss levels and Sell alerts too.
GET A 3-MONTH FREE TRIAL TO CONCIERGE TODAY
No credit card needed and the trial expires automatically.
Blog Categories
Get Our Top 5 ASX Stocks for FY25
Recent Posts
Why These 5 ASX Dividend Shares Make More Sense Than Term Deposits Right Now
Investors constantly search for safe, reliable ways to grow their wealth. Historically, term deposits have been the go-to choice for…
How Lower Interest Rates Could Boost These 5 ASX Stocks in 2025
The Reserve Bank of Australia’s (RBA) decision to lower interest rates in 2025 has sparked renewed optimism among investors seeking…
This Time is Different: Marcus Templeton said this phase was costly in 1933, but here is when it may be true
‘The investor who says, “This time is different,” when in fact it’s virtually a repeat of an earlier situation, has…