Deals
Tahoe Takes Advantage of Cheap Loonie to Buy Lake Shore Gold
- Agrees to acquire Canada miner in $678 million all-stock deal
- Deal may be precursor for surge in Canadian M&A, analyst says
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Tahoe Resources Inc.’s purchase of Toronto-based miner Lake Shore Gold Corp. could be a forerunner of more deals as foreign mining companies look to Canada for its stable political environment and weak dollar.
Reno, Nevada-based Tahoe agreed to acquire Lake Shore on Monday in an all-stock deal valued at C$945 million ($678 million). From the perspective of Tahoe, which has mines in Latin America, the advantages are twofold, according to Barry Allan, a Toronto-based senior vice president at Mackie Research Capital Corp.