Thursday, 28th June 2007 (2233 views)

A trio of gold exploration companies are in talks over a merger, causing a rise and fall in stocks for the businesses.

Meridian Gold has acknowledged the announcement by Yamana Gold regarding its intention to make an offer to acquire 100 per cent of its outstanding shares.

Yamana also revealed that it has entered into a merger agreement with Northern Orion Resources which is conditional on the acquisition of Meridian Gold shares by Yamana.

Commentators note that the proposed amalgamation would create a major world-stage gold producer.

"The combination of Yamana, Northern Orion and Meridian makes sense from a strategic and geographic perspective and we believe that the proposed structure is a creative way to unlock value for all shareholders involved," Peter Marrone, chairman of Yamana told the Canadian Press.

The news provider also reveals that Yamana has been acquiring other mining companies recently, including three takeovers last year totalling $1.2 billion (£0.1 billion) of RNC Gold, Desert Sun Mining and Viceroy Exploration.

 

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