International Mining Merger


A Canadian mining company, listed on the LSX, operating out of the highly volatile Democratic Republic of Congo was looking to partner with a similarly sized outfit to help grow the company’s capabilities, reach in the area and to deliver value to its shareholders. While supporting the organization in its investor and overall corporate communications positioning to highlight the benefits of the merger, the situation was further complicated by the target company’s CEO being faced with the full brunt of a defunct legal and political system. The government and mining regulators concurrently decided to put into place temporary legislation that would see all previously approved mining contracts suspended and awaiting review by local authorities, further jeopardizing the deal. Our key objective was to communicate the benefits of the proposed merger to key stakeholders while working furiously with mining authorities to ensure that the appropriately procured governing mining contract would continue to be in force. We needed to maintain the company’s reputation as a credible operator within the country and reinforce the trust of shareholders, regulators, Canadian and foreign governments and investors. We maintained ongoing lines of communication to all stakeholders through regular media releases, investor and analyst calls and by leveraging the media in Canada,
the UK and South Africa as a key communications tool.

The Results

  • Company’s mining contracts were reinstated, reinforcing a positive reputation.
  • Provided the media with access to the CEO on an open and frequent basis to convey calm in an otherwise highly volatile industry and situation.
  • Merger of equals was successfully concluded. The company went on to be a leader in its space, growing its influence in the area, while maintaining the confidence of and generating value for its shareholders.