Intrepid, Emperor reach merger deal

Emperor Mines (EMP-A) has found its buyer in Intrepid Mines (IAU-T, IAU-A), which has proposed a merger deal that values Emperor at $62 million.

Intrepid is offering one of its shares for every 4.25 Emperor shares, under a plan of arrangement that would also see DRDGold (DROOY-Q) sell its 79% shareholding in Emperor. Emperor and DRDGold have already reached an understanding that the sale of the control block will be “orderly.”

The plan of arrangement would need shareholders of both companies to approve and would also need the consent of the Toronto Stock Exchange and the courts. The companies plan an Emperor shareholder meeting in early December for closing in January 2008.

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