Toronto's Kinross Gold Corp. (TSX:K) plans to acquire Vancouver's Underworld Resources Inc. (TSX-V:UW) in a share and cash deal worth approximately $139.2 million.
Kinross is acquiring Underworld for the White Gold project, located in the Tintina gold belt, approximately 95 kilometres south of Dawson City, Yukon.
Underworld shareholders will receive approximately 0.141 Kinross shares plus $0.01 in cash, valuing Underworld at $2.62 per share. The deal represents a 36% premium over the closing price of Underworld shares on March 10 and a 50.2% premium of the volume-weighted average price of Underworld shares for the 20-day trading days ending March 10.
Underworld's share price range during the past week: $1.76 and $1.93; 52-week high: $2.64; 52-week low: $0.41.