The news feeds on this site are independently provided by Adfero Limited © and do not represent the views or opinions of the World Gold Council.

Wednesday, 7th January 2009 (1449 views)

Linear Gold has announced that it has agreed an approximately $19 million (£12.8 million) all-stock deal to take over Central Sun Mining.

Under the terms of the merger agreement, the exploration company, which has properties in Mexico and the Dominican Republic through joint ventures with Kinross Gold and Everton Resources, will acquire all outstanding common shares of Central Sun Mining.

Central Sun is a growing gold producer with mining and exploration activities in Nicaragua, including the Limon and Orosi mines and an option to acquire a 100 per cent interest in the Mestiza gold property.

Wade Dawe, Linear Gold president and chief executive, commented: "We believe this transaction is an attractive opportunity to acquire a portfolio of gold assets."

Executives from the two companies have stated that the new firm will have the potential to increase annual gold production from 45,000 ounces of gold to an estimated 130,000 ounces a year by the end of 2009.

Shareholders in Central Sun will receive 0.4 common shares in Linear Gold for each common share they own in Central Sun, subject to a definitive agreement, regulatory and shareholder approval.

 

« Back to Gold News stories