(Rio) Glamis Gold Ltd. says it has struck a $1.2-billion all-stock deal to acquire Western Silver Corp. (Western Copper Corp)
Investors reacted by sending shares of Western Silver up $5.28 to $24.80 on the TSX on Friday. Shares of Glamis slipped $1.11 to close at $33.62.
Under the terms announced Friday, each Western Silver shareholder will receive 0.688 of a Glamis common share, and one share in a new exploration and development company for each Western Silver share.
Western Silver (TSX:WTC) will shift about $38 million in cash, its interest in a copper project in the Yukon and an early-stage exploration project in Mexico to the new exploration company.