UPDATE: Trade Winds Adds A Third In Value, Near Yr Highs on Detour Gold Bid

By Midnight Trader,  September 26, 2011, 10:13:38 AM EDT

Trade Winds Ventures Inc. (TWD.V) was closing in on year highs on news that it entered into a definitive agreement with Detour Gold Corporation (DGC.TO) that will see Detour Gold - which was down more than 8% - acquire all of the issued and outstanding common shares of Trade Winds, by way of a court approved plan of arrangement, for total consideration of $84 million. A trading halt had been placed on TWD early Monday.

Under the terms of the agreement, Trade Winds shareholders will receive 0.0142 of a Detour Gold share and C$0.0001 in cash for each Trade Winds share held. Based on Detour Gold's share price on September 23, 2011, this represents total consideration of C$0.455 per Trade Winds share and a premium of 57% to Trade Winds' closing price on September 23, 2011. Based on the respective 20-day volume weighted average prices of Detour Gold and Trade Winds, as at September 23, 2011, the consideration represents a premium of 61%. The principal assets of Trade Winds are its interest in the 50/50 joint venture with Detour Gold in respect of the Block A property, located adjacent to Detour Gold's Detour Lake project, and its wholly-owned Gowest property, which is also located in the Detour Lake area.




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Commodities

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