Gold miner Rio Alto to buy Sulliden Gold in C$300 mln deal

Wed May 21, 2014 6:53am EDT
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May 21 (Reuters) - Rio Alto Mining Ltd said it would buy Sulliden Gold Corp Ltd in a deal valued at about C$300 million ($275 million), creating a gold miner focused on Peru.

The deal value excludes the stake Sulliden shareholders will get in a new company that will hold Sulliden's stake in a East Sullivan prospect in Val-d'Or, Quebec.

Rio Alto will pay 0.525 of one Rio Alto share for each outstanding Sulliden share. The offer values Sulliden at C$1.12 per share, representing a 43 percent premium to the stock's Tuesday close of 78 Canadian cents on the Toronto Stock Exchange.

Rio Alto shares closed at C$2.13. ($1 = 1.0898 Canadian Dollars) (Reporting by Swetha Gopinath in Bangalore; Editing by Savio D'Souza)