Denver-based Newmont Mining Corp. (NYSE:NEM) is acquiring Vancouver's Miramar Mining Corp. (TSX:MAE) for $1.5 billion.
The deal, which has the unanimous approval of Miramar's board, will give Miramar shareholders $6.25 cash per common share. The offer price represents a 29% premium over Miramar's 20-day volume-weighted average trading price.
Newmont had previously invested in Miramar in 2005, noting the strategic potential of Miramar's Hope Bay Project in Nunavut, one of North America's largest undeveloped gold projects. With Miramar's progress on the project, Newmont decided the time was right to acquire the project and further its development.
The deal is subject to customary regulatory and shareholder approvals and requires that at least two-thirds of Miramar shares outstanding be acquired by Newmont, which currently holds 8.4% of Miramar shares.
Miramar's share price range during the past week: between $4.87 and $5.19; 52-week high: $6.12; 52-week low: $4.04.