Strathmore Minerals has agreed to acquire all of the issued and outstanding shares of Saratoga Gold Company for a total consideration of $8.9m.
Saratoga’s main project Copper King Au-Cu comprises two leases, totalling 1,120 acres, located in the Silver Crown Mining district in Wyoming, US.
It also holds 52 lode mining claims in the state of Montana, near Tintina Resources’ Black Butte copper-cobalt-silver project.
Under the terms of the deal, Strathmore has agreed to issue 1.25 common shares for each common share of Saratoga.
Saratoga Gold CEO Norm Burmeister said: "We approached Strathmore with this opportunity because of their reputation and expertise in development and permitting in Wyoming."
Burmeister added: "Saratoga’s shareholders look forward to continuing with the progress made on the Copper King project under Strathmore’s guidance."
Strathmore Minerals CEO David Miller said the company is excited about the opportunity to create value for Strathmore’s shareholders outside of its core uranium business, by acquiring the gold-copper project.
"Our major focus on uranium has not changed with the largest drilling and permitting budget in Strathmore’s history recently approved by the Board for moving the Roca Honda and Gas Hills projects forward," said Miller.
"This acquisition enables Strathmore to enhance its mineral base with an advanced gold-copper project within our geographic area of expertise."
The transaction, subject to regulatory approvals, is expected to close before 15 May 2012.