Two advisory firms give Primero and Brigus merger thumbs up
TORONTO (miningweekly.com) – Canadian advisory firms Institutional Shareholder Services (ISS) and Glass Lewis & Co on Tuesday recommended shareholders support precious metals miner Primero Mining and Brigus Gold’s proposed $220-million merger, that would see the two companies form a new North American midtier gold producer, with operations in Ontario and Mexico.
Shareholders of the two companies were expected to attend special meetings next Thursday to vote on the plan of arrangement.
In its reaction, ISS had highlighted the “sound rationale” for the arrangement and the favourable market reaction.
ISS further recommended in favour of the reduction in Brigus stated capital, stating that "…this accounting request will not affect the value of the company or the shares, and will better reflect the company's actual capitalisation and shareholders' equity”.
ISS is the world's leading provider of corporate governance solutions to the global financial community. More than 1 700 institutional clients rely on the expertise of ISS to help them make more informed investment decisions on behalf of their shareholders.
The combined company was expected to produce 250 000 oz to 270 000 oz of gold-equivalent ounces in 2014, at below average cash costs. That could rise to about 400 000 oz in 2017.
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