Newly formed Leagold Mining (LMC-H.V) made a splash earlier this month with the acquisition of Goldcorp’s Los Filos Mine in Mexico, one of Latin America’s largest gold mines with 2015 production of 272,900 ounces. Leagold was launched on the TSX-Venture in August 2016 with the aim of becoming a mid-tier gold producer focused on Latin America and the company hasn’t wasted any time in getting to work. CEO Neil Woodyer offered the following comments on the Los Filos acquisition:
“The Los Filos Gold Mine represents an exceptional opportunity to acquire a quality operation with scale that generates free cash flow and has an identified future growth project. Los Filos has near-term upside potential from optimizing the current operations under a focused management team and from the development of a new underground mine at El Bermejal. Additionally, there are several exploration opportunities within the area of current operations that could extend mine life. Leagold’s management team has significant experience successfully acquiring gold mines, increasing productivity, lowering costs and optimizing development projects. We look forward to working with the Los Filos team and the local communities to develop the long-term potential of the mine. We are also pleased to be partnering with Goldcorp with a shared vision of Leagold becoming a leading intermediate gold producer in Latin America with a ‘buy & build’ strategy that includes the acquisition of additional gold mines and developing advance-stage projects into operating mines.”
With an exceptional management team including four former executives and two former board members of Endeavour Mining (TSX:EDV), Leagold has the knowledge and expertise to grow a successful gold producer through acquisitions. Moreover, an exceptionally strong and well connected shareholder base which includes CEO Neil Woodyer (~20% shareholder) and legendary mining entrepreneur Frank Giustra (~9% shareholder) and unparalleled access to capital gives Leagold an advantage in the acquisition game.
The following slide from Leagold’s most recent investor presentation illustrates why the company has chosen to focus on Latin America:
We look forward to following Leagold as the company works to optimize Los Filos as well as to acquire other attractive Latin American gold assets.
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