Primero snapping up Cerro del Gallo

摘要

Toronto-based gold producer Primero Mining (P-T, PPP-N) has waded into merger-and-acquisition waters with a friendly offer to buy Australian gold explorer Cerro Resources (CJO-V, CJO-A) in an all-stock deal worth US$120 million. Cerro shareholders would receive 0.023 of a Primero share for each Cerro share held, which represents a 62% premium on Cerro's 20-day, volume-weighted average price, and a 77% premium on Cerro's closing price of A8.6 cents on Dec. 12.