First Mining Finance Update: Gold Canyon Resources Arbitrage Completed! (November 17, 2015)

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I know a few readers, along with myself, were involved in the Gold Canyon Resources (GDCRF/GCU.V) arbitrage opportunity, utilizing this as a gateway to potentially get into First Mining Finance (FFMGF/FF.V) at a reduced cost basis.

Just as a quick update, it looks like First Mining Finance’s acquisition of both Gold Canyon Resources and PC Gold are now competed!

From First Mining Finance:

VANCOUVER, BC, CANADA – First Mining Finance Corp. (“First Mining”) (FF: TSXV; FFMGF: OTCQB), Gold Canyon Resources Inc. (“Gold Canyon”) and PC Gold Inc. (“PC Gold”) are pleased to announce the successful completion of their previously announced business combinations, pursuant to which First Mining has acquired all of the common shares of each of Gold Canyon and PC Gold by way of separate court approved plans of arrangement (the “Gold Canyon Arrangement” and the “PC Gold Arrangement”, respectively, and together the “Arrangements”).

Keith Neumeyer, Chairman of First Mining stated, “With the completion of these two transactions, First Mining Finance has now closed three acquisitions in less than eight months of becoming publically traded. We plan to continue aggressively building our mineral bank by creating one of the largest portfolios of development and exploration projects in the Western Hemisphere. I am delighted to welcome shareholders of both Gold Canyon and PC Gold to our exciting and rapidly growing company.”

Under the terms of the Gold Canyon Arrangement, each Gold Canyon shareholder is entitled to receive one First Mining common share for each common share of Gold Canyon. Unexercised Gold Canyon warrants and Gold Canyon stock options will now entitle the holder to acquire one First Mining common share for each Gold Canyon common share previously provided for. 

As part of the Gold Canyon Arrangement, Gold Canyon has also transferred its early stage non?gold exploration properties together with C$500,000 in cash and certain other assets to Irving Resources Inc. (“Irving Resources”, formerly 1047431 B.C. Ltd.). Under the terms of the Gold Canyon Arrangement, in addition to the First Mining securities referred to above, each Gold Canyon shareholder is entitled to receive 0.03333 Irving Resources common shares (rounded down to the nearest whole share) for each common share of Gold Canyon


Looks like the “New Gold Canyon Resources” will be renamed “Irving Resources”, and former shareholders of Gold Canyon Resources will be entitled to a “free gift”, along with the First Mining Finance shares. I haven’t yet decided what to do with these new Irving Resources shares, but in any event, it will only comprise a very minuscule portion of my overall portfolio… I may just elect to hang onto them…

At this moment in time, it does not yet appear that shares of Gold Canyon Resources have been converted into First Mining Finance shares (my online accounts still show GCU holdings)… However, both Gold Canyon Resources and PC Gold shares have been suspended from trading… so it looks like the transfer should be imminent.

Let’s hope so!

With FF.V currently trading at C$0.40/share, my cost basis for 30,000 shares through the GCU.V arb was C$0.304/share. That’s about a 31.5% gain for a little less than two month’s worth of patience.

I attempted a second-pass arb through the OTC markets. FFMGF is currently trading at $0.304/share. My cost basis for 70,000 shares through the GDCRF arb was $0.277/share. About 9.74%.

Not so lucrative the second time around…

Most likely, I will hold onto the newly converted FF.V and FFMGF shares since I believe in the company and their long-term strategy and vision.

With my mining portfolio completely decimated at the moment, I’ll take whatever wins I can get!!! 🙂


Happy Speculating!

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4 years ago

Really cool you were able to take advantage of the arbitrage opportunity. Now since your portfolio has first mining finance shares, are you aware if this company will be treated as a PFIC. A PFIC would have severe tax implications as per the IRS.
Are you sure that first minig is not a PFIC?