Excellon Resources

xcellon Resources (TSE:EXN) announced that it has agreed to acquire junior exploration company, Lateegra Gold (CVE:LRG), in an all share deal.

Under the terms of the deal, Lateegra shareholders will receive 0.54 common shares of Excellon for each Lateegra share they own, implying a price of $0.46 per Lateegra share.

This represents a premium of 27.2% from Lateegra's closing price yesterday.

Upon completion of the transaction, Lateegra shareholders will own approximately 11.9% of Excellon, fully diluted.

Through the acquisition, Toronto-based Excellon, which currently produces silver, lead and zinc from its Platosa property in Mexico, will gain access to one of the world's most prolific mining camps, as Lateegra's main asset is the 51% interest in the DeSantis gold mine, in the heart of the Timmins Camp in northeastern Ontario.

The DeSantis property has historically seen 35,800 ounces of intermittent gold production between 1933 and 1964.

News of the deal prompted Lateegra's stock on the TSX Venture Exchange to spike 10.96%, trading at $0.405 per share.

Vancouver-based Lateegra's board has already approved the deal, and 30% of its shareholders have already agreed to vote in favour of the transaction. The acquisition is expected to close sometime in July.