Argonaut Gold's acquiring a rival gold miner.
Toronto-based Argonaut says it has entered into a definitive agreement for an at-market mergre to acquire all shares for Vancouver-based Alio Gold.
Under the deal, Alio shareholders will get two-thirds of an Argonaut common share per Alio common share, giving existing Alio shareholders about 24% of the combined company.
Argonaut says the move will create a "diversified intermediate producer" with four operations totalling over 235,000 gold equivalent ounces annually and assets in Canada, the U-S, and Mexico, though it is also touting "significant operating and jurisdictional synergies", a "robust growth pipeline" including the nearby Magino property, "improved capital markets scale", and "financial flexibility".