TORONTO (miningweekly.com) – Exploration firm Canadian Gold Hunter has entered into a definitive agreement to buy junior Sanu Gold in an all-stock transaction, the firms announced on Thursday.

Sanu shareholders will receive 0,5725 shares in Canadian Gold for every Sanu share held, valuing Sanu at C$0,233 a share.

After the business combination, former shareholders of Sanu will hold approximately 17,8% of the outstanding shares of Canadian Gold Hunter.

The transaction is expected to close by the end of August.

Canadian Gold has exploration assets in Canada, Mexico, Argentina, Colombia and Peru, while Sanu's portfolio includes properties in Eritrea, the Republic of Congo and Burkina Faso.

“Combining the two companies will create one of the strongest exploration vehicles in the industry,” the firms said in a statement.

Earlier this year, Canadian Gold Hunter bought another exploration junior, Suramina Resources, also for shares.

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