Bermuda-based Griffin Mining Ltd. (LSE-AIM:GMF) plans to acquire Vancouver's Yukon Zinc (TSX-V:YZC) in a deal that will include full ownership of the Wolverine project in the Yukon and a controlling stake in China's Caijiaying mine.
Under the acquisition agreement, Yukon shareholders will get one Griffin share for every nine Yukon shares. That puts the value of each Yukon share at $0.21, which is a 46.9% premium based on the April 18 closing prices of the two companies' share. The deal is expected to close by July 31, at which time Yukon shareholders would hold roughly 16% of Griffin's shares.
The Wolverine mine produces zinc, silver, copper, gold and lead; the Caijiaying mine, which Griffin will have a 60% stake in, produces zinc, silver, gold and lead.
The Yukon board of directors has voted unanimously to support the deal.
Yukon's share price range during the past week: between $0.14 and $0.15; 52-week high: $0.32; 52-week low: $0.09.