* To pay 52.1 mln shares, valued at C$260 mln
* Fronteer to own 6.7 pct of Paladin on deal close
Dec 17 Australia-based Paladin Energy Ltd
(PDN.TO) (PDN.AX) agreed to buy the uranium assets of Canada's
Fronteer Gold Inc FRG.TO in an all-stock deal valued at about
C$260 million ($258.7 million).
Under the terms, Fronteer Gold will receive 52.1 million
Paladin shares listed on the Toronto Stock Exchange for the
uranium assets owned by its unit Aurora Energy Resources Inc,
Fronteer said in a statement.
The company will become the largest shareholder in Paladin
on closing of the deal, with a 6.7 percent stake, expected in
the first quarter of 2011.
Fronteer Gold, aiming to become a significant gold producer
in Nevada, said the sale will allow it to focus on its Long
Canyon and Northumberland project.
Aurora Energy holds uranium assets in the highly
prospective Central Mineral Belt of Newfoundland and Labrador
in Eastern Canada.
Shares of Fronteer Gold closed at C$11.14 on Thursday on
the Toronto Stock Exchange, while those of Paladin closed at
(Reporting by Aftab Ahmed in Bangalore; Editing by
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