US Gold Corp, Minera Andes Both Higher Amid Reports They May Merge
US Gold Corp (UXG.TO) and Minera Andes Inc (MAI.TO) would form a mid-tier silver miner with operations in the Americas under an all-stock merger proposed by the chief executive and top shareholder in both, Reuters reported.
UXG is up 15 cents at $5.53. MAI is up 9 cents at $2.14.
The proposal would give shareholders of Minera Andes 0.4 of a US Gold common share for each Minera share currently held, Reuters said. At that conversion rate, Minera's 282.7 million shares outstanding would be worth some 113.08 million US Gold shares, which closed trading on Monday at C$5.38 a share, giving the exchange a total value of some C$608.37 million. Reuters added.
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