Mexico-focused explorer
Soltoro Ltd. (
TSX: V.SOL,
Stock Forum) said Friday it has agreed to be acquired by Toronto-based gold mining giant
Agnico-Eagle Mines Ltd. (
TSX: T.AEM,
Stock Forum) (
NYSE: AEM,
Stock Forum) in a $31.6 million deal worth 32.5 cents a share.
News of the deal sent Soltoro shares rising 40.5% to 29.5 cents, leaving a market cap of $22.3 million, based on 75.5 million shares outstanding. The 52-week range is 27.5 cents and 8 cents.
As a result of the transaction, Agnico-Eagle will acquire the El Rayo, El Tecolote, La Tortuga, San Pedro and Quila exploration projects in the state of Jalisco, Mexico.
For each share held, Soltoro shareholders will be entitled to receive 0.00793 of an Agnico-Eagle common share, $0.01 in cash and one common share valued at $0.02 of a new company to be newly formed and spun off to Soltoro shareholders.
The offer represents a premium of approximately 51% to the volume weighted average price of Soltoro common shares on the TSX Venture Exchange for the 20-day period ended April 9, 2015 and a premium of 55% to the last trading day prior to the announcement of the transaction,
Soltoro said in a press release.
Soltoro will transfer to the spinoff company assets and liabilities associated with the Gavilan, El Santuario and Chinipas exploration properties currently held by Soltoro, and are located outside the state of Jalisco. SpinCo will initially be capitalized with approximately $2 million in cash contributed by Agnico-Eagle.