July 2, 2009 / 2:49 PM / 9 years ago

UPDATE 1-Canadian Gold Hunter to buy Sanu Resources

* Says Sanu to operate as its subsidiary

* Sanu shares up 21 percent

July 2 (Reuters) - Gold miner Canadian Gold Hunter Corp CGH.TO said it agreed to acquire Sanu Resources Ltd SNU.V in an all-stock deal to expand its gold and base metal exploration and production activities to Africa.

Canadian Gold Hunter said it will issue 0.5725 of its shares for each Sanu share. Based on Canadian Gold Hunter’s prior closing price of 36.5 Canadian cents, the deal values Sanu at about 21 Canadian cents a share, a premium of 27 percent to its previous close.

Shares of Sanu rose 21 percent to 20 Canadian cents Thursday morning on the Toronto Venture Exchange. Canadian Gold Hunter shares were down 4 percent on the Toronto Stock Exchange.

Sanu will be a wholly owned subsidiary of Canadian Gold Hunter after the deal closes, which is expected to occur by the end of August.

Former shareholders of Sanu will hold about 17.8 percent of Canadian Gold Hunter following the deal.

Canadian Gold Hunter, which has projects in Canada, Mexico and South America, said Sanu has projects in African nations like Eritrea, Republic of Congo and Burkina Faso.

For the alerts, please double click [ID:nWNAB4038] (Reporting by Arup Roychoudhury in Bangalore; Editing by Deepak Kannan)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below