Newmont Mining and Fronteer Gold have enetered into an agreement whereby Newmont Mining will aqcuire Fronteer Gold and create a new company called Pilot Gold that will own certain exploration assets of Fronteer Gold for $14 CAD ($13.84 USD) and one share of the new company per share of Fronteer Gold. There is no indication what those exploration assets will be, but several months ago Fronteer indicated that they had found more gold in other areas of their drilling project than originally expected. This leads me to beleive that what Pilot Gold gets will prove lucrative. Also, Fronteer recently sold their uranium assetts to Paladin Energy Ltd several days ago. Coincidental......I don't know.
This news of Newmont Mining taking over Fronteer Gold has resulted in a current increase in share price by 38%. From a personal persepctive, that will result in a net gain of 21.5% for my real investment in FRG, not including shares in the new company. I felt good about FRG's future prospects without this buyout due to their exploration findings. While the specifics of this deal are not known, and therefore I have no clue what assets Pilot Gold will get from Fronteer, I am faily certain that this would end up being a good deal.
I wonder, however, what happens to the other exploration assets that Fronteer currently has and that do not go to Pilot Gold? Do those assets become property of Newmont Mining?
Sinch, if your out there, any thoughts on the matter? Anyone else want to chime in? Personally, if the deal goes down, I'm gonna take the $ and the shares and ride this one out for a while.
All in all, a nice find. Thanks Sinch for turning me onto FRG!