Vancouver's Bolero Resources Corp. (TSX-V:BRU) plans to acquire Gryphon Gold Corp (TSX:GGN) in an all-share deal worth approximately $18 million.
Under the proposed transaction, Gryphon shareholders would receive one Bolero share for every two Gryphon shares held. The deal values each Gryphon share at approximately $0.25 per share, which is roughly a 25% premium to the average Gryphon share price over the past 30 days.
Gryphon shares were up 7.5% to $0.215 in late day trading on Wednesday.
Gryphon's principal asset is its 27.5-square-mile Borealis project located in the Walker Lane belt of western Nevada.
Bolero plans to issue approximately 35.1 million shares to Gryphon Gold shareholders, equivalent to 64% of the enlarged Bolero share capital base.
Gryphon's share price range during the past week: between $0.19 and $0.21; 52-week high: $0.325; 52-week low: $0.10.
Bolero's share price range during the past week: between $0.49 and $0.52; 52-week high: $3.00; 52-week low: $0.185.