Vancouver-based Creston Moly Corp. (TSX-V:CMS) and Vancouver's Tenajon Resources Corp. (TSX-V:TJS) plan to merge in an all-share deal worth roughly $9.8 million.
According to the companies, the deal will create a more diversified molybdenum exploration firm that combines Creston's molybdenum project in Mexico with Tenajon's Ajax deposit near Alice Arm, B.C., and the Moly Brook deposit in Newfoundland.
Creston plans to acquire all the shares of Tenajon on the basis of 0.84 share of Creston for each Tenajon share. The deal, which has the support of the boards of both companies, but is still subject to customary closing conditions and shareholder and regulatory approval, is expected to close in the 2009's third quarter.
Tenajon's president and CEO, Bruce McLeod, will become president and CEO of the new Creston company; Creston president and CEO Jonathan George will step down but serve as an adviser to the board. Creston's Colin Benner will remain as chairman and Creston's Wayne Johnstone will remain the new company's CFO.
Creston's share price range during the past week: between $0.16 and $0.18; 52-week high: $0.445; 52-week low: $0.05.
Tenajon's share price range during the past week: between $0.15 and $0.16; 52-week high: $0.46; 52-week low: $0.04.