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Jul. 16, 2012 03:37PM PST
Liberty Silver Corp. (TSX:LSL) announced plans to buy up all the outstanding common shares of junior exploration company Sennen Resources Ltd (TSXV:SN).
Liberty Silver Corp. (TSX:LSL) announced plans to buy up all the outstanding common shares of junior exploration company Sennen Resources Ltd (TSXV:SN).
Under the offer, Sennen shareholders will receive 0.28 of a Liberty Silver common share for each Sennen common share, being an implied offer price per Sennen common share of $0.20. The offer represents a premium of 47.3% to the 20-day volume weighted average trading price ended July 13, 2012, being $0.135. This is also larger in comparison to the average take-over bid premium paid for mining companies listed on the Toronto Stock Exchange and TSX Venture Exchange over the past 12 months of 34.8%. The offer is valued at $13.36 million.
Geoff Browne, Liberty Silver’s CEO, commented:
Sennen represents a great opportunity for Liberty Silver at a time of growing consolidation in the global mining industry. Depressed valuations for junior mining companies alongside healthy precious metal prices have created an environment ideal for mergers and acquisitions activity. Liberty Silver is well-placed to take advantage of these opportunities using our mitigated-risk approach to project evaluation and development. We are confident that the combination of Sennen’s cash resources and Liberty Silver’s skilled management team and proven risk-mitigation strategy will enable us to advance our promising Trinity Silver project in Nevada and to identify other low-risk projects.
Click here to read the full press release.
