Yamana Gold (TSX: T.YRI, Stock Forum) Monday said it would buy Extorre Gold Mines (TSX: T.XG, Stock Forum) for $412.9 million, or $4.26 per share, in a cash-and-stock agreement. Extorre shareholders will receive $3.50 in cash and 0.0467 of a Yamana share for each share they own.
"It is a relatively small transaction in that it represents only three percent of Yamana's market capitalization yet it could ultimately deliver more than 10 percent of our total gold equivalent production," Yamana's CEO Peter Marrone said in an interview with Reuters.
Extorre's most advanced project is the Cerro Moro property in Argentina, which has indicated resources of 1.36 million ounces of gold equivalent mineral resources.