Imperial Metals Corporation (TSX: III) said it has reached an agreement with Selkirk Metals Corp (TSX: SLK) to buy the corporation for C$0.12 per Selkirk share, a premium to Friday’s closing price of C$0.11 per share.
Imperial Metals thus acquires Selkirk’s portfolio of development stage and advanced exploration projects to expand its mineral asset base.
Selkirk’s shareholders have a choice of either receiving C$0.12 for each Selkirk share they hold or receive one Imperial share for every 30 Selkirk shares. Imperial curbed the amount of shares that can be issued under this provision to 2.2 million. If this limit is exceeded, the shares will be allocated on a pro-rata basis with the balance paid in cash.
Overall, the deal is estimated to be worth around C$10.4 million.
Imperial opened Monday with a 1.1% loss.