Rio Alto Mining Ltd. (RIO.TO 1.96 -0.17 -7.98%) said it would buy Sulliden Gold Corp. Ltd. (SUE.TO 1.04 0.26 33.33%) in a deal valued at about $300 million ($275 million US), 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 share of 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 $1.12 per share, representing a 43-percent premium to the stock's Tuesday close of 78 cents on the Toronto Stock Exchange.
Rio Alto shares closed at $2.13.
