Grayd Resource Corporation (CVE:GYD) (PINK:GYDRF) announced the company will be sold for a substantial premium to the market price.
GYD share price went up 42% upon the news and will be trading near the $2.80 area which was the offered price.
This morning it was announced that Agnico-Eagle Mines Ltd. (TSE:AEM) (NYSE:AEM) will acquire the company for $280 million. The deal was made to obtain an early stage La India project that Grayd had been working on. The property is located in the Mulatos Gold Belt of Sonora, Mexico. Upon acquisition, Agnico-Eagle will lend Grayd $5 million which should be used for exploration expenses on the project.
GYD shareholders will receive 0.04039 AEM share and 5 Canadian cents or C$2.80 per each share they hold. The payment will create 2.7 million new AEM shares which represents 1.4% dilution to their shareholders.
The acquisition comes shortly after the company announced promising drilling results. On Sep 1 Grayd announced the latest assay results from their drilling campaign at Tarachi, which is part of La India property. The company had just identified two new higher grade zones and said that mineralization remains open in all directions. Grades ranging from 0.33 g/t to 1.38 g/t gold were found, which are common for gold porphyry style mineralization.
