Merchant banker Endeavour Financial Corp. has agreed to acquire the remaining outstanding interest in Etruscan Resources Inc. that it does not already own for $43-million in cash plus additional shares.
The company said Monday that it will pay 48 cents per Etruscan share for the remaining 45 per cent of Etruscan, which places a total value of $79.3-million on those shares.
The agreement is comprised of 26 cents in cash and 0.093 of an Endeavour share, which it said is a 33 per cent premium on the weighted average prices for the 20 days ended June 25.
"We have been active shareholders of Etruscan since October, 2009, and have been pleased with the quality of Etruscan's producing and exploration assets and its management and operating teams," Endeavour chief executive officer Neil Woodyer said in a release.
Etruscan shareholders are expected to hold a special meeting in August which will include a vote on the transaction. Other approvals are required from the Toronto Stock Exchange and the Nova Scotia Supreme Court.
"This transaction gives Etruscan shareholders the opportunity to participate directly in Endeavour's broader growth strategy in the gold sector through exposure to additional gold assets and financial resources," Etruscan chairman Gerald McConnell said in a release.
A target completion date for the transaction is expected in the third quarter of the year.