Vancouver-based Canadian Gold Hunter Corp. (TSX:CGH) plans to acquire Vancouver's Sanu Resources Ltd. (TSX-V:SNU) in an all-share deal worth approximately $11.7 million.
The deal will expand CGH's global inventory of mining exploration projects in Canada, Mexico, Argentina, Chile, Columbia and Peru. Sanu has projects in Burkina Faso, Morocco, the Republic of Congo and Eritrea.
CGH plans to acquire all of Sanu's shares on the basis of 0.5725 CGH shares for each Sanu share. The deal values Sanu at $0.233 per share, which represents a 25% premium to Sanu's 20-day volume-weighted average closing price.
Sanu will become a wholly owned subsidiary of CGH. Sanu shareholders will own approximately 17.8% of CGH following completion of the deal, which is expected by the end of August.
CGH's share price range during the past week: between $0.36 and $0.395; 52-week high: $2.19; 52-week low: $0.17.