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Monday, November 10, 2014

New Gold to purchase Bayfield; Scorpio and US Silver & Gold to merge, (CVE: BYV.V), (AMEX: NGD), (TSE: NGD.TO), (TSE: SPM.TO)

The precious metals sector in Canada, which has been battered by the plunge in gold and silver prices, received a small spot of positive news on Monday, with the announcement of two separate M&A deals. Investment bankers and industry insiders believe more such deals will be needed for miners, whose share prices have dropped in recent months, to ride out the extended slump.Vancouver, British Columbia-based New Gold said on Monday it planned to purchase exploration company Bayfield Ventures Corp for C$16.6 million to expand its land holdings in the Rainy River mining district in northwestern Ontario.Separately late on Friday, two silver miners Scorpio Mining and U.S. Silver & Gold also announced plans to merge, creating a C$65 million ($57.5 million) combined entity with a bigger portfolio of silver assets in the Americas.The deals at values substantially below historical highs reflect the challenges facing the sector, as gold prices have dropped over 30 percent, and silver has plunged more than 50 percent over the last two years.

Bayfield Ventures Corp. is a Canada-based company. Shares of BYV traded higher by 39.29% or $0.055/share to $0.20. In the past year, the shares have traded as low as $0.12 and as high as $0.41. On average, 94411 shares of BYV.V exchange hands on a given day and today's volume is recorded at 632294.

New Gold Inc. is engaged in gold mining and related activities, including acquisition, exploration, extraction, processing and reclamation. Shares of NGD fell by 5.01% or $-0.195/share to $3.70. In the past year, the shares have traded as low as $3.37 and as high as $6.78. On average, 3648010 shares of NGD exchange hands on a given day and today's volume is recorded at 1586166.

New Gold Inc. is engaged in gold mining and related activities, including acquisition, exploration, extraction, processing and reclamation. Shares of NGD fell by 4.77% or $-0.21/share to $4.19. In the past year, the shares have traded as low as $3.85 and as high as $7.28. On average, 830598 shares of NGD.TO exchange hands on a given day and today's volume is recorded at 375420.

Scorpio Mining Corporation (Scorpio Mining) conducts mining exploration, development and production in Mexico. Shares of SPM traded higher by 5.13% or $0.01/share to $0.20. In the past year, the shares have traded as low as $0.17 and as high as $0.44. On average, 136927 shares of SPM.TO exchange hands on a given day and today's volume is recorded at 94100.



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