Argonaut Gold Inc. plans to acquire Prodigy Gold for shares and cash in a friendly deal valued at $341 million.
Prodigy shareholders will receive 0.1042 of an Argonaut Gold share and $0.00001 Cdn in cash per Prodigy share. The deal represents a 54 per cent premium to Prodigy shareholders based on a 20-day volume weight average of the two companies.
Argonaut shares closed at $10.48 Friday on the TSX, down 13 cents but still slightly above the volume-weighted average used to value the deal. Prodigy stock closed up two cents at 69 cents.
