Toronto-listed Wesdome Gold Mines will acquire junior exploration company Angus Gold in a cash-and-share deal valued at about $40-million, expanding its land position at the Eagle River operation fourfold and creating a 400 km² contiguous land package on the Mishibishu Lake greenstone belt in Ontario.

Under the definitive agreement, Wesdome will acquire all outstanding Angus shares not already owned by the company through a court-approved plan of arrangement. Shareholders will receive $0.62 in cash and 0.0096 of a Wesdome share per Angus share - representing a total consideration of $0.77 a share.

Wesdome already owns 6.3-million shares and 3.15-million warrants in Angus, giving it a 10.4% stake on a basic basis and 14.9% on a partially diluted basis.

Wesdome president and CEO Anthea Bath said the transaction was a “highly logical and strategic tuck-in” that enhanced the company’s ability to drive value through exploration.

“It reinforces our belief in the geological potential of the Mishibishu Lake greenstone belt, aligns with our focus on regional consolidation, and positions us to deliver sustainable, long-term growth supported by our strong balance sheet and existing infrastructure.”

She said Angus’ $20-million exploration investment since 2020 had generated a robust pipeline of targets.

“Wesdome intends to continue this momentum, focusing on high-priority zones such as the Cameron Lake BIF and Eagle River Splay in 2025.”

Angus president and CEO Breanne Beh called the deal “a testament to the dedication and diligent work of the Angus team", highlighting accomplishments such as the consolidation of the Golden Sky property, over 40 000 m of drilling, and several gold discoveries. “We believe this transaction delivers immediate value to our shareholders and provides the opportunity to benefit from a well-established and well-financed gold producer.”

The arrangement must be approved by at least two-thirds of Angus shareholders and a simple majority of disinterested shareholders. A special meeting is expected in June, with the transaction slated to close in the second quarter.

Wesdome has entered into lock-up agreements with Angus shareholders representing 47% of the outstanding shares, including directors, officers, and New Gold, which will tender its 4.85-million shares, or 8% of the register.

The deal includes standard non-solicitation covenants and a $2.3-million break fee payable by Angus under certain conditions. The Angus board has unanimously approved the transaction and recommends shareholders vote in favour.