TORONTO (miningweekly.com) – Vancouver-based Endeavour Silver will offer to buy junior Cream Minerals for about C$10,6-million in cash, the company said on Monday.
Endeavour will offer C$0,12 a share for each Cream share, which represents a 76% premium to the average closing price for the ten trading days ending September 24, the firm said.
Shares in Cream Minerals shot up 66,7% on Monday after the stock resumed trading, after having been halted pending the announcement.
"The offer price of C$0,12 cash per share represents a significant premium to both the recent trading price of Cream Minerals shares and their two-year average share price,” Endeavour CEO Bradford Cooke said in a statement.
“Endeavour's offer provides full value for Cream Minerals and its main asset, the Nuevo Milenio exploration property located in Nayarit State, Mexico.”
Endeavour operates two precious-metals mines in Mexico, and Cream has properties in Canada, Mexico and Sierra Leone.
The offer would allow Cream shareholders to “realise immediate value and liquidity for their shares at a substantial premium without assuming any of the risks and dilution associated with the further exploration and development of the Nuevo Milenio project, or other Cream Minerals properties,” Cooke said.
Cream Minerals, which closed on Friday at 7,5 Canadian cents a share, was trading at 12,5 cents a share by 15:05 in Toronto on Monday.
Endeavour Silver declined 2,62%, to C$4,09 a share.