Dia Bras Exploration (DIB-V, DBEXF-O) plans to join forces with fellow Mexico-focused explorer Exmin Resources (EXM-V, EXMFF-O) in a friendly all-share deal worth $2.75 million.
The two companies have agreed that Dia Bras will acquire all of the outstanding shares of Exmin. They will use an exchange ratio of 0.2209 Dia Bras shares for each Exmin share.
The deal represents a 17.8% premium for Exmin based on the 15- day volume-weighted average share prices of both companies on July 16, or a 32.5% premium based on Exmin’s closing price on the same day.
When the deal is complete, Exmin shareholders will hold 7% of Dia Bras.
Buying Exmin will allow Dia Bras to hold more land near its Bolivar copper-zinc project in the Sierra Madre gold belt, in Chihuahua state, Mexico.
“This transaction allows Dia Bras to add significant gold potential to its property portfolio, as well as expanding the company’s control of the Bolivar district,” said Dia Bras president and CEO Daniel Tellechea in a statement.
Dia Bras has been exploring at Bolivar while simultaneously running an ongoing pilot-mining program. The company trucks ore to its 850-tonne-per-day Malpaso mill, about 150 km away.
Exmin has gold and base metals exploration projects in the same area including the Reyna de Oro project, which includes a 25% indirect interest in the Reyna de Oro mine and an option to acquire the remaining 75%, and the Batopilas project.
“The combined company will create an exploration division that has the ability to finance projects through development to production,” said Exmin president and CEO Karl Boltz in a statement.
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