(Updates with details on transaction)
LONDON (Thomson Financial) - Griffin Mining Ltd. said it has agreed to acquire Canada-based Yukon Zinc Corp., and added it will offer one share for every nine Yukon Zinc shares held.
The company said the transaction needs the approval of two-thirds of Yukon Zinc's shareholders, and added Yukon Zinc has agreed to pay a break fee of C$2.5 million.
Griffin said the shares to be issued as payment would be valued at 45.31 million pounds based on the closing price of Griffin's shares of 89.5 pence on April 21.
After completion, Griffin will have a 60 percent interest in the low-cost Caijiaying zinc-gold-silver-lead mine in the People's Republic of China and a 100 percent interest in the high grade advanced zinc-silver-copper-gold-lead Wolverine project in Yukon Canada.
When the Wolverine project achieves full production status, projected annual zinc production in concentrates from Caijiaying and Wolverine is expected to be above 150 million pounds and annual payable silver production above 4.5 million ounces, along with significant production of copper, gold and lead. TFN.newsdesk@thomsonreuters.com ans/nes COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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