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St Barbara Agrees $536 Million Deal to Add Canada Gold Miner

  • Producer to acquire Atlantic Gold Corp. amid sector’s M&A wave
  • Australian buyer plans to sell shares, added new loan facility

Australian gold producer St Barbara Ltd. agreed to pay C$722 million ($536 million) to acquire Atlantic Gold Corp., adding a mine in Canada as the sector’s wave of consolidation continues.

St Barbara offered C$2.90 a share for Vancouver-based Atlantic Gold, about a 40% premium to Tuesday’s close, and will fund the deal from cash reserves and by raising about A$490 million ($340 million) in a share sale to existing holders, according to a statement Wednesday. Atlantic said its board has unanimously approved the deal.