IKN

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Yamana (AUY) (YRI.to) buys Extorre (XG) (XG.to)

Now there’s a thing, a $4.26 cash and paper deal. Here’s the NR, here’s the start of the blurb:

VANCOUVER, BRITISH COLUMBIA–(Marketwire -06/18/12)-
Extorre Gold Mines Limited (XG)(XG)(XG.TO)(E1R.F)
(“Extorre” or the “Company”) is pleased to announce today that it has
entered into a definitive agreement (the “Agreement”) with Yamana Gold
Inc. (YRI.TO)(AUY)(YAU.L)
(“Yamana”) pursuant to which Yamana will acquire all of the issued and
outstanding common shares of Extorre (“Extorre Shares”) by way of a
statutory plan of arrangement (the “Arrangement”) under the Canada
Business Corporations Act.

Transaction Details

Under the terms of the Agreement, each Extorre shareholder will receive
in exchange for each Extorre Share held, $3.50 in cash and 0.0467 of a
common share of Yamana (“Yamana Share”). Each holder of an Extorre stock
option (an “Option”) shall be entitled to receive, upon the exercise of
such Options, Yamana Shares based upon a share exchange ratio of 0.2648
of a Yamana Share for each Extorre Share which would have been issuable
upon exercise of such Options prior to the effective date of the
Arrangement.

Based on the closing price of the Yamana Shares on the Toronto Stock
Exchange (“TSX”) of $16.36 on June 15, 2012, the last trading day before
announcement of the Arrangement, the implied transaction price of $4.26
per Extorre Share represents a premium of approximately 54% over the
20-day volume weighted average price of the Extorre Shares on the TSX
for the period ending June 15, 2012. The transaction value on a basic
shares outstanding basis is approximately $414 million.

Completion of the Arrangement is subject to continues here

UPDATE: This

That Marrone guy earns more than you do. There’s a reason for that.

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