Toronto’s Yamana Gold, Inc. announced this week that it will acquire Extorre Gold Mines Ltd. for a hefty $400 million. Valued at approximately $395 million, the Argentine Extorre Mines should add about 3% in value to Yamana overall. Extorre focuses primarily on exploration and the development of precious metal projects in South America. Through this acquisition, Yamana hopes to continue its increase in gold supplies as precious metal markets continue to steadily rise.
Holders of Yamana’s stock are generally pleased with acquisition as Yamana has planned to increase its dividends by 18 cents per share. Extorre holders are also getting a bargain, receiving $3.50 per share of Extorre stock and .467 shares of Yamana stock in exchange. Holders of Extorre options are also receiving .2648 shares of Yamana stock in exchange for their options. Therefore, Extorre holders may continue to grow with the company as it transitions to Yamana ownership.