we're nextCanadian gold producer Yamana to take over Viceroy in $577-million stock deal
05:14:53 EDT Aug 17, 2006
Canadian Press
TORONTO (CP) - Canadian gold producer Yamana Gold Inc. (TSX:YRI) announced Wednesday it plans to acquire Viceroy Exploration Ltd (TSX:VYE) in an all-stock $577 million Cdn deal.
Yamana will offer Viceroy shareholders 0.97 of a Yamana common share for each Viceroy share held
Both companies' boards have approved the takeover.
The deal value is $10.86 per Viceroy common share, based on closing prices on the TSX Wednesday of $11.20 for Yamana and $8.65 for Viceroy, representing a 25.5 per cent premium.
Viceroy's advanced exploration stage Gualcamayo gold project in Argentina will come under Yamana's control once the deal is completed.
Peter Marrone, president and chief executive officer of Yamana, said, "In our strategic vision which we developed in late 2005, our goal was to produce one million ounces (28 million grams) of gold by 2008. With this acquisition, we will have the assets in place to allow us to meet that goal. The purchase of Viceroy adds another large-scale, long-life project to Yamana's existing assets."
Yamana expects its gold production to be about 17 million grams next year.
After the deal, the new company will be held 85 per cent by Yamana shareholders and 15 per cent by Viceroy shareholders.