OceanaGold Corporation
(ASX:OGC) will buy Canadian gold miner Pacific Rim Mining Corp in a deal valued at $10.4 million.
The company is offering about 0.04 of its shares for each Pacific Rim share, which would see it issue 6.76 million new shares to Pacific Rim holders.
The offer values Pacific Rim shares at 6 Canadian cents apiece, a 50 per cent premium to the stock's 20-day volume weighted average trading price on the Toronto Stock Exchange.
For OceanaGold, the proposed acquisition would give it control of Pacific Rim's El Dorado Gold Project in El Salvador, a high grade gold-silver resource yet to be developed.
The agreement has been unanimously approved by the directors of OceanaGold and Pacific Rim, excluding one common director who abstained from voting.
OceanaGold booked a net loss of $68.4 million in the first half of fiscal 2013.
