Griffin Mining (LSE: GFM) announced that it has signed an agreement to acquire Yukon Zinc (TSX-V: YZC) in an all share deal.
Griffin will issue one new share for every nine shares in Yukon Zinc, which based on the closing price of 89.5 pence per share of Griffin Mining on the 21st April 2008 values Yukon Zinc at approximately £45.3 million (C$90.4 million). Griffin will also issue stock options and warrants to compensate for outstanding warrants and options in Yukon Zinc.
The combined company would have over US$200 million in cash, no debt plus a 60% interest in the Caijiaying zinc-gold-silver-lead mine in China and a 100% interest in the zinc-silver-copper-gold-lead Wolverine Project in Yukon Canada. Annual production once Wolverine is in production would be in excess of 150 million pounds of zinc concentrates plus 4.5 million ounces of silver and significant quantities of gold, copper and lead.