A proposed deal in the steel sector emerged as the highest-valued transaction among mergers and acquisitions in the metals and mining sector during the week ended Dec. 11, according to a screener of transactions on S&P Global Market Intelligence's online platform.
U.S. Steel Corp. outlined plans to exercise a call option to acquire the remaining 50.1% interest in Big River Steel LLC for about $774 million, using cash on hand to pay for the transaction. The company acquired the option after it bought a 49.9% stake in the steel business for $700 million in October 2019.
In other top deals for the week, Wheaton Precious Metals Corp. struck a definitive agreement to buy a silver stream on Capstone Mining Corp.'s polymetallic Cozamin mine in Mexico for $150 million in cash. Wheaton Precious will receive 50% of the mine's silver production at 10% of the spot silver price until 10 million ounces are delivered, after which the stream will decrease to 33% of mined silver production.
Eyeing mining potential in a remote region of Ontario, Wyloo Metals Pty. Ltd. entered a definitive agreement to acquire a 22.6% interest in Noront Resources Ltd. from Resource Capital Fund V LP and Resource Capital Annex Fund V in a $26.8 million transaction. Noront is developing nickel, copper, platinum and palladium resources, and Wyloo Metals is the mining unit of Australian private investment group Tattarang.
Northern Vertex Mining Corp. agreed to acquire Eclipse Gold Mining Corp. in an all-share deal valued at $25.1 million. The transaction is expected to close in February 2021, after which the companies will focus joint efforts on the Western United States.
Rounding out the top five mergers and acquisitions for the week, Resource Development Group Ltd. said it would acquire Australian Garnet Corp. Pty Ltd. in a $13.1 million all-share deal to be completed in two tranches. Australian Garnet owns the Balline garnet project in Western Australia.