Vancouver's Rockgate Capital Corp. (TSX-V:RGT) plans to acquire Kamloops-based Delta Exploration Inc. (TSX-V:DEV) in an all-share deal worth roughly $6 million.
The acquisition will give the company 100% ownership of the Falea uranium-silver-copper project in Mali, West Africa. Delta owns 40% of the project; Rockgate owns the remaining 60%.
Under the deal, Delta shareholders will receive 0.45 of a Rockgate common share for each Delta share. Based on the 20-day volume-weighted average share price of both companies, the deal provides an 87% premium for Delta shareholders valuing each share at $0.216.
Delta's share price during the past week: between $0.10 and $0.19; 52-week high: $0.57; 52-week low: $0.07.
Rockgate's share price during the past week: between $0.33 and $0.48; 52-week high: $1.19; 52-week low: $0.25