VANCOUVER _
OceanaGold Corp. (
TSX: T.OGC,
Stock Forum) announced Tuesday that has an agreement to buy
Pacific Rim Mining Corp. (
TSX: T.PMU,
Stock Forum) in an all-share deal that values Pacific Rim at about $12.7 million.
Under the deal, OceanaGold has agreed to pay 0.04006 of an OceanaGold share for each Pacific Rim share it doesn't already own.
OceanaGold shares eased 2.6% to $1.47, leaving the company with a market cap of $431.6 million, based on 293.6 million shares outstanding. The 52-week range is $3.70 and $1.04.
Pacific Rim shares rose 57% to 5.5 cents, leaving a market cap of $11.6 million, based on 210.9 million shares outstanding. The 52-week range is 12.5 cents and 3.5 cents.
In a press release, the companies said the deal provides Pacific Rim shareholders with a 50% premium. They also said the deal aligns well with OceanaGold’s strategy to invest in high quality, low cost assets and utilise its proven mine developing capabilities and experience to advance the El Dorado gold project in El Salvador.
OceanaGold has mines in New Zealand and the Philippines. It currently owns 42.1 million Pacific Rim shares, or 20% of the company.