McEwen Closes Acquisition of Canadian Gold, Targets Tartan Mine Restart

The latest update is out from Satori Resources ( (TSE:CGC) ).

McEwen Inc. and Canadian Gold Corp. have completed their previously announced business combination by way of a statutory plan of arrangement, under which each Canadian Gold share will be exchanged for 0.0225 McEwen common shares. Canadian Gold’s shares will be delisted from the TSX Venture Exchange, and the company plans to cease being a reporting issuer, effectively folding its operations and shareholders into McEwen. McEwen’s chairman and chief owner Rob McEwen highlighted the exploration and development potential of the Tartan project acquired in the deal, outlining plans to accelerate exploration, begin mine plan engineering, advance permitting with the goal of restarting the mine, and publish an updated resource estimate by the end of February. To satisfy New York Stock Exchange requirements, an amended arrangement stipulates that all Canadian Gold shares held by Rob McEwen will be exchanged for subscription receipts rather than McEwen shares, with those receipts converting into shares only upon approval by McEwen shareholders, or being settled in cash if such approval is not obtained, a change that affects only his holdings and not the consideration received by other Canadian Gold investors.

The most recent analyst rating on (TSE:CGC) stock is a Hold with a C$0.56 price target. To see the full list of analyst forecasts on Satori Resources stock, see the TSE:CGC Stock Forecast page.

Spark’s Take on TSE:CGC Stock

According to Spark, TipRanks’ AI Analyst, TSE:CGC is a Neutral.

The score is held down primarily by the lack of revenue, ongoing losses, and sustained negative free cash flow, which imply continued dependence on external funding despite having no debt. Technical indicators are neutral-to-slightly supportive but not strong enough to offset weak fundamentals, and valuation is constrained by negative earnings and no dividend data.

To see Spark’s full report on TSE:CGC stock, click here.

More about Satori Resources

McEwen Inc. is a North American precious metals producer with shares listed on the NYSE and TSX under the symbol MUX. The company offers investors exposure to a growing base of gold and silver production along with a large copper development project, with its mining operations located in prolific mineral-rich districts including Nevada’s Cortez Trend, Ontario’s Timmins camp, and Argentina’s Deseado Massif.

Average Trading Volume: 314,590

Technical Sentiment Signal: Strong Buy

Current Market Cap: C$126.3M

For detailed information about CGC stock, go to TipRanks’ Stock Analysis page.