Vancouver's Atna Resources Ltd. (TSX:ATN) has announced plans to acquire a Colorado-based mining firm with interests in multiple gold projects in the western United States for approximately $25.3 million.
Under the terms of the deal, Canyon Resources Corp. (AMEX:CAU) shareholders will receive 0.32 common shares of Atna for each share of common stock of Canyon. Based on last Friday's closing price of $1.68 for Atna, the consideration is valued at $0.54 per Canyon common share.
Atna holds a portfolio of gold exploration projects in the United States, Canada and Chile, that includes a 70% interest in Nevada's Pinson gold deposit. It plans to bring Canyon's two mine projects in California and Nevada into production in 2008 and 2009.
Annual gold production from the projects is expected to reach between 60,000 and 80,000 ounces at a per ounce cash cost of US$400 to US$450.
The Atna acquisition deal still needs the approval of Canyon's majority shareholders.
Atna's share price range during the past week: between $1.66 and $1.79; 52-week high: $1.96; 52-week low: $1.08.