VANCOUVER — Producer Yamana Gold (TSX: YRI; NYSE: AUY) is hoping to further expand its presence in Canada with a $17.5-million cash and shares agreement for explorer Mega Precious Metals (TSXV: MGP) and its 338 km2 Monument Bay gold-tungsten project roughly 340 km east southeast of Thompson, MB. The deal also gives Yamana a foothold in Ontario’s prolific Red Lake gold district in the form of Mega’s North Madsen property.
Yamana will acquire Mega under a plan of arrangement for consideration of 0.02092 of a Yamana share and cash of 0.1¢ per Mega share, which equates to 10¢ per Mega share based on Yamana’s April 23 closing price. In the event of a superior proposal, Yamana has a five business-day right to match.
The junior had been trading near a 52-week low of 4.5¢ per share at the time of the bid, and was sitting on around $2 million in cash.
“The acquisition of [Mega] advances Yamana’s strategy to expand our presence in Canada, which we established last year with the joint acquisition of Canadian Malartic and a portfolio of exploration properties in Quebec and Ontario,” William Wulftange, Yamana’s senior vice president exploration, said in the release.
Read the complete article at NorthernMiner.com/yamana