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Yamana Finalizes Acquisition of Meridian and Northern Orion

On Monday, Yamana and Meridian announced that 79,873,250 common shares of Meridian Gold had been validly deposited to Yamana, equating to approximately 78 percent of Meridian’s common shares on a fully diluted basis.

Consequently, all of the conditions to Yamana’s agreement with Northern Orion were met and Yamana’s acquisition of Northern Orion was completed and became effective on October 13, 2007. Northern Orion shareholders will receive 0.543 of a Yamana common share and C$0.001 in cash for each Northern Orion share.

We have long been a fan of Northern Orion (NTO), including it in our list of Top 8 Gold Stocks, although technically they are more of a copper play than gold. We first highlighted Northern Orion back in February of this year, stating:

“NTO has been on a steady decline since May of 2006, forming a descending triangle pattern. This pattern often forecasts a breakout and should be seen as bullish with clear support around $3.75. This support line has been tested three times over the past year and has held every time. Although it is still early to confirm, technical indicators are turning North for both the RSI and MACD, confirming the bullish sentiment.”

Bullish indeed! NTO bounced off support at $3.75 and rocketed all the way to $7.50, doubling in value. Yamana’s offer of .543 shares equates to roughly that amount, as Yamana recently closed at C$13.43 on the TSE.

Congratulations to our readers who went along for part or all of the ride! There are several other takeover targets waiting to be snatched up by the resource-hungry majors. A few that we place high on that list can be found in our October 11th article titled “Newmont Grabs Miramar – Who Is Next Gold Takeover Target?

As always, good luck and happy investing!

By | 2017-03-23T14:06:41+00:00 October 17th, 2007|Gold & Silver Commentary|

About the Author:

Jason Hamlin is the founder of Gold Stock Bull and has been investing in precious metals for over 20 years. Jason spent nearly a decade in analytics for the world’s largest market research firm, before finding success investing full time. He launched Gold Stock Bull in 2005 and turned his focus from helping fortune 500 companies to helping individual investors. Jason is a student of Austrian economics and a proponent of cryptocurrencies such as bitcoin and ethereum.