Gold has passed yet another milestone in one of its best years in decades. The yellow metal has exceeded $4,200 per ounce on the spot market on Wednesday morning. At these levels, it is unsurprising to see merger and acquisition activity accelerating.
Institutional expectations for rally continuation remain positive, as seen in the latest Bank of America (BofA) note.
“Looking into 2026, a 14% increase in investment demand, similar to what we’ve seen this year, could lift gold to $5,000, “BofA Research said. The bank cited robust investment demand and structural supply constraints, although noting short-term correction risks.
With this acquisition, the firm adds a quality asset in its backyard, while avoiding the heavy capex burden of a greenfield build. The offer, at 0.60 Canadian dollar per share, represents a 96.7% premium to the latest close price.
Canadian Gold shareholders will receive 0.0225 McEwen shares per share held, resulting in McEwen shareholders holding 92% of the combined entity. The court-approved plan of arrangement should close in early 2026.
Meanwhile, New York-based Flagship Gold Corp has signed a partnership with Mali’s state-owned miner. The firm is targeting Morila mine, once one of the continent’s premier producers under Barrick (NYSE:B) and AngloGold Ashanti (NYSE:AU).
Despite resource depletion, Morila still holds at least 2.5 million ounces in reserves. Following Firefinch’s exit in 2022, the mine came under state control.
Loncor shareholders – including Resolute Mining, which holds 18% – have backed the transaction. The deal is expected to close in early 2026.
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