Andover Ventures Inc. (TSX-V:AOX) plans to buy fellow Vancouver-based company SNS Silver Corp. (TSX-V:SNS) in an all share deal worth roughly $8.1 million.
The acquisition will give Andover ownership of SNS's Crescent mine and diversify its resource holdings, which include a mineral project in Utah and another in Alaska.
Under the terms of the deal, SNS shareholders will receive half an Andover share for each SNS share, valuing SNS at $0.20 per share. That represents a 9.9% premium to the 20-day volume weighted price.
As part of the deal, Andover will provide a $2 million bridge loan to SNS, secured against Andover's assets.
The deal, which is subject to customary closing conditions and regulatory approval, is expected to close December 31.
Andover's share price range during the past week: between $0.35 and $0.43; 52-week high: $0.73; 52-week low: $0.32.