Fronteer Development Group Inc. (TSX:FRG) has acquired most of the shares of Vancouver's Aurora Energy Resources (TSX:AXU) in an all-share deal worth approximately $82.1 million.
In December, Fronteer, a Vancouver-based gold exploration company, made the offer for the 58% stake in Aurora that it did not already own. The deal represented a 96% premium over the 20-day volume-weighted average trading price of Aurora.
It will more than double Fronteer's cash on hand to $186 million from $81 million and would eliminate the company's need to seek equity financing during the credit crunch. It would increase the combined company's ability to grow through further merger or acquisition and combine ownership of various gold and uranium projects.
Fronteer's share price range during the past week: between $2.67 and $3.11; 52-week high: $9.19; 52-week low: $1.55.