Yamana Gold to acquire Extorre Gold

18 June 2012 (Last Updated June 18th, 2012 18:30)

Canada-based Yamana Gold has entered into an agreement to acquire all outstanding shares in Extorre Gold Mines for a total consideration of $404m.

gold mine

Canada-based Yamana Gold has entered into an agreement to acquire all outstanding shares in Extorre Gold Mines for a total consideration of $404m.

Under the terms of the agreement, each Extorre shareholder will receive $3.50 per share in cash and 0.0467 of a common share of Yamana.

Extorre has also agreed to a $15m termination fee under certain circumstances, including acceptance of a superior proposal.

Extorre Gold Mines co-chairman Yale Simpson said, "The Cerro Moro project fits very well into Yamana's portfolio and Yamana has both the operational experience in Argentina and financial strength to develop the project on a timely basis."

The acquisition must be approved by at least 66.67% of Extorre shareholders and is also subject to other approvals, including court approvals and the receipt of all necessary regulatory approvals.

The transaction is expected to close in August 2012.

Extorre is a junior mining company with exploration and development stage precious metals projects in Argentina, the most advanced of which is its Cerro Moro project in the province of Santa Cruz.


Image: Extorre Gold Mines' assets include Cerro Moro gold and silver project in the Santa Cruz province of Argentina. Photo:Extorre Gold Mines Limited.