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Monday, 29th December 2008 (1593 views)

London-based gold firm Cambrian Mining has agreed to a new all-share takeover deal with Western Canadian Coal.

Under the merger contract, Cambrian investors will receive 0.75 shares in Western Canadian for each share they own in the British company, a 39 per cent premium on Cambrian's share price when merger talks started on December 16th.

The agreement is subject to shareholder and regulatory approvals and Western Canadian Coal is currently the largest shareholder in Cambrian Mining.

Commenting on the deal, John Hogg, Western Canadian chief executive, said: "This will create an enlarged company that can better endure the current economic uncertainty."

Diversified mining group Cambrian supports a number of mines including the Augusta gold and antimony mine in Victoria, Australia.

Cambrian Mining reported a rise in antimony concentrate payable metal sales for the 2008 financial year to 920 tonnes with corresponding payable gold of 7,550 ounces.

 

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