Gran Colombia Gold (GCM.TO), a Canadian gold miner focused on Colombia, said on Wednesday it had agreed to acquire slightly smaller rival Medoro Resources (MRS.TO) as the companies join forces in the Andean nation. Under the terms of the all-stock deal, Medoro shareholders are to receive 1.20 common shares of Gran Colombia, plus 0.50 of a Gran Colombia common share purchase warrant for each Medoro share. Each whole warrant is exercisable to buy one common share of Gran Colombia at C$2.60, and will expire on Aug. 24, 2015. Upon completion of the transaction, Gran Colombia shareholders will hold about 56 percent of the pro forma company, while Medoro shareholders will hold about 44 percent. The new company will have a combined market capitalization of over C$1 billion, the firms said.
Source