From: Biniam Haile \(SWE\) (eritrea.lave@comhem.se)
Date: Thu Jul 02 2009 - 20:30:02 EDT
Canadian Gold Hunter and Sanu Resources sign merger pact
New York (Platts)--2Jul2009
Canadian Gold Hunter and Sanu Resources have entered into a "definitive
agreement" to combine their operations by way of a plan of arrangement
under
the Canada Business Corporations, the two exploration companies
announced Thursday.
Under the terms of the agreement, Canadian Gold Hunter will acquire
all of the issued and outstanding shares of Sanu on the basis of 0.5725
share of
Canadian Gold Hunter for each Sanu share. All outstanding Sanu options
will be exchanged for replacement options of Canadian Gold Hunter, the
number and
exercise price of which will be determined using the exchange ratio.
The transaction values the Sanu shares at C$0.233 each,
representing a 25% premium to the 20-day volume weighted average closing
price of Sanu,
according to the joint statement.
Upon completion of the transaction, Sanu will be a wholly-owned
subsidiary of Canadian Gold Hunter and Canadian Gold Hunter will have
roughly
134,161,066 shares outstanding. Former shareholders of Sanu will hold
about 17.8% of the outstanding shares of Canadian Gold Hunter. The
transaction is
expected to close by the end of August, 2009.
The transaction has been approved by Sanu's board of directors and
a special meeting of shareholders has been scheduled for August 17 for
their approval.
Sanu has a portfolio of gold and base metal exploration projects in
Africa, including the Hambok gold deposit in Eritrea with indicated
resources
of 10.7 million mt grading 0.98% copper, 2.25% zinc, 6.84 g/mt silver,
0.20 g/mt gold containing 231.1 million lb of copper, 530.7 million lb
of zinc, 2.3
million oz of silver and 68,800 oz of gold.
Canadian Gold Hunter holds a portfolio of exploration projects in
Canada, Mexico, Argentina, Chile, Colombia and Peru.
--Ovid Abrams, <mailto:ovid_abrams@platts.com> ovid_abrams@platts.com
Similar stories appear in Platts Metals Week.
See more information at http://plattsmetals.platts.com
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