Glamis Gold and Western Silver Corp. strike $1.2B deal
Glamis Gold Ltd. says it has struck a $1.2-billion all-stock deal to acquire Western Silver 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.
Glamis (TSX:GLG) said its offer values each Western Silver share at $23.96 plus the value of each share of the new exploration company, estimated at 89 cents each. The boards of directors of both firms have endorsed the deal.
"Western Silver's Penasquito project is a world class development asset that will significantly increase our gold and silver reserves and extend our sector-leading growth profile," said Kevin McArthur, the president and CEO of Glamis.
"Our shareholders gain a long-term precious metals asset in one of the world's most attractive mining jurisdictions," McArthur said.
Shares of Glamis slipped $1.11 to close at $33.62 on the TSX, while Western Silver rose $5.28 to finish at $24.80