NEW YORK (AP) -- Yamana Gold Inc. plans to buy Extorre Gold Mines Ltd. in a cash-and-stock deal valued at $403.6 million, the companies announced Monday.
Yamana, an Ontario-based gold producer, will acquire Extorre's precious metals mines in Argentina as part of the agreement, including the Cerro Moro project in the province of Santa Cruz.
Yale Simpson, Extorre co-chairman, said that Yamana's offer represents a "good outcome" for Extorre shareholders in an uncertain economy. Investors also have been concerned about the risks involved in developing the Cerro Moro project following a surprise move by Argentina to seize control of its leading oil company from Spanish investors.
"Yamana has both the operational experience in Argentina and financial strength to develop the project on a timely basis," Simpson said in a statement.
Yamana will pay Extorre investors $3.41 and 0.467 shares of Yamana for every Extorre share they own. Shares of Extorre jumped $1.50, or 56.4 percent, to close at $4.16.
Extorre's board of directors has approved the deal. The company's shareholders are expected to decide whether to approve the offer on Aug. 15. The deal also must be approved by regulators.
Extorre is based in Vancouver, British Columbia.
