H.C. Wainwright maintains Buy on Fury Gold shares, target at $1.20

On Monday, H.C. Wainwright reaffirmed a Buy rating on Fury Gold Mines Ltd. (NYSE:FURY), currently trading at $0.39 with a market capitalization of $59.25 million, with a steady price target of $1.20. According to InvestingPro analysis, the stock appears slightly undervalued at current levels. The endorsement comes in light of Fury Gold Mines’ recent strategic move to acquire Quebec Precious Metals (QPM). The transaction involves an exchange of Fury common shares for all outstanding shares of QPM.

The terms of the agreement, announced on February 26, 2025, stipulate that QPM shareholders will receive 0.0741 common shares of Fury for each QPM share they own. This exchange rate translates to a value of C$0.04 per QPM common share, marking a 33% premium based on the closing prices from February 25, 2025. Following the announcement, QPM obtained a no-objection letter that was necessary for advancing the deal. Notably, InvestingPro data shows Fury maintains a strong balance sheet with a healthy current ratio of 5.32, indicating robust liquidity to support the acquisition.

The upcoming shareholder meeting for QPM, scheduled for April 22, 2025, is expected to result in shareholder approval for the merger. Conditional approvals from both the Toronto Stock Exchange (TSX) and the NYSE American have already been secured by Fury Gold Mines.

The analyst from H.C. Wainwright predicts that the deal will be finalized later in April 2025. The reaffirmation of the Buy rating and the $1.20 price target reflects confidence in the strategic acquisition and the future prospects of Fury Gold Mines following the completion of this merger. InvestingPro subscribers can access additional insights, including 6 key ProTips and comprehensive financial metrics that provide a deeper understanding of Fury’s investment potential.

In other recent news, Fury Gold Mines Limited announced a strategic transaction to acquire Quebec Precious Metals Corporation. The agreement, finalized on February 25, 2025, involves a share exchange, where QPM shareholders will receive 0.0741 Fury shares for each QPM share. This exchange reflects a 33% premium based on the closing prices before the agreement and values QPM shares at C$0.04 each. The transaction will result in Fury shareholders owning approximately 95% of the merged entity, while QPM shareholders will hold about 5%. The Sakami project, a key component of QPM’s portfolio, has shown promising gold mineralization, with nearly 50,000 meters of drilling completed. Fury aims to accelerate exploration efforts on this and other targets within the expanded land package. The deal is pending customary closing conditions, including shareholder and court approvals, with an expected completion by the end of April 2025. Upon completion, QPM shares will be delisted from the TSXV, and the company will no longer be a reporting issuer under Canadian securities laws.

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