A major deal was announced in the %Mining sector this morning, as a Singapore-based company revealed its acquisition of a Vancouver-based mining firm. The news sent the miner’s shares sharply higher.
As mentioned, shares of %LuminaGold Corp. (TSXV: $LUM) (OTC: $LMGDF) are surging after the company announced that they have entered into an arrangement agreement with CMOC Singapore Pte. Ltd., a subsidiary of CMOC Group Limited, under which CMOC will acquire all outstanding common shares of Lumina for C$1.27 per share in an all-cash deal. This acquisition values Lumina at approximately C$581 million on a fully diluted basis. The purchase price represents a premium of about 71% over Lumina’s 20-day volume-weighted average trading price and 41% over the closing price on April 17, 2025. The deal will be executed through a plan of arrangement and is subject to shareholder and regulatory approvals.
A significant portion of Lumina’s shareholders, representing 52.3% of outstanding shares, have already agreed to vote in favor of the transaction. Lumina CEO Marshall Koval highlighted the company’s decade-long progress on the Cangrejos project, transforming it into one of the world’s largest gold projects. Koval expressed optimism about CMOC’s ability to continue advancing the project and emphasized the Lumina team’s commitment to working alongside CMOC to support its successful development.
The deal offers several benefits to Lumina shareholders, including a substantial premium, immediate liquidity, and an all-cash offer with no financing conditions, reducing risk and ensuring certainty of value. CMOC is also providing interim financing of US$20 million to support ongoing needs at the Cangrejos project. The acquisition eliminates future dilution and exposure to commodity and execution risks. The transaction is expected to close in the third quarter of 2025, after which Lumina’s shares will be delisted and the company will cease to be a reporting issuer in Canada.
Shares of LUM are currently up 28.89% at $1.16 per share while U.S. listed shares (LMGDF) are rallying 24.85% at $0.835 on the acquisition news.
