Irish oil and mineral exploration company Celtic Resources has made an all-share acquisition offer to Eureka Mining.
The boards of both companies recommended the offer, the statement said.
Celtic Resources is offering five Celtic shares for every 16 Eureka shares, and the offer values each Eureka share at 53.4 pence, based on a Celtic share price of 171 pence.
The enlarged group would have two operating gold mines and an operating molybdenum mine, all in the same region of Kazakhstan, allowing for substantial cost savings.
An EGM will be held on November 30th to vote on the merger, Eureka said.
Agencies
