TORONTO (miningweekly.com) – Another pair of Canadian juniors will merge their businesses, after Canadian Gold Hunter and Suramina Resources agreed on a share-based tie-up.

Canadian Gold Hunter will exchange 0,7541 of one of its own shares for every Suramina share, so that current Suramina shareholders will hold about 47,3% of the enlarged company, the firms said in a statement on Friday.

The transaction has the backing of both boards and is expected to close in mid-April.

Suramina is exploring for copper and gold in South America, while Canadian Gold Hunter has exploration assets in Mexico and Canada.

“In the short term, capital market conditions favour stronger, larger, diversified exploration vehicles,” the companies explained in a joint statement.

“In the long term, the combined entity will be extremely well positioned for the anticipated commodity markets recovery, with a diversified roster of gold/copper projects in various stages of advancement."

Shares in Canadian Gold Hunter rose 20% on Friday, to C$0,30 apiece by 15:59. Suramina gained 2,27%, to C$0,225 a share.

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