The stock of Trade Winds Ventures Inc. (CVE:TWD), (PINK:TWDIF) flew up yesterday after big news for the corporation was released. Most investors are intrigued, waiting eagerly to see the further performance of the shares, especially on the Canadian Venture Exchange (CVE).
It was really a strong start of the week for the company. Trade Winds informed about entering into a definitive agreement with its joint venture partner Detour Gold Corporation. Detour will acquire all common shares of the company for total consideration of $84M. Under the deal, Trade’s stockholders will get about $0.455 for each share held based on last Friday’s share price of Detour Gold.
Not surprisingly, the stock made a huge jump on the CVE upon the announcement of the take-over news. TWD gained 43%, climbing from $0.29 to $0.415 on a striking share turnover exceeding 20.4M. The volume marked a record, while the price noted a 6-month high.
We shall see whether the shares will continue their progress in the coming days. Perhaps, they would move further up reaching the mentioned level of $0.455. Of course, that very much depends on how the take-over story will develop. The transaction with Detour will have to be approved by Trade’s shareholders at a special meeting scheduled to be held this November.
Probably, the agreement will make easier the development of Detour Lake Project. As we see in the latest Trade presentation, Detour Lake Block A property is supposed to contain 90.5M tonnes of Indicated and 73.7M tonnes of Inferred resources. Currently, Block A is a 50/50 joint venture between Trade Winds and Detour Gold Corporation.
About a month ago, the company announced some promising results from its 1H 2011 drilling program on Block A completed in May. Commenting the above-mentioned take-over agreement, Trade’s President Mr. Lambert expressed his believe that their shareholders “will be able to participate in the upside in Detour Gold’s shares as it enters the intermediate producers rank through the development of Detour Lake.”
