* Tevali to pay equivalent of C$0.334 per Kria share
* New company to have operations in Canada, Peru
TORONTO Dec 16 Zinc miner Trevali Resources
Corp (TV.TO) said on Thursday it has agreed to buy base metal
explorer Kria Resources KIA.V in a deal worth about C$44
Trevali said it will finance the deal with stock, paying
0.2 of a common share for each common share of Kria. It said
the offer represented a 33.6 percent premium to the closing
price of Kria on Dec. 15.
The combination will create a mid-tier base metal producer
with assets in Canada and Peru. It will have two mines in
production between 2011-12, with resource expansion potential.
The companies are partnered separately with global mining
powers Glencore International in Peru and Xstrata XTA.L in
The new company will likely be called Trevali Mining Corp
and will be 74.2 percent-owned by Trevali shareholders and 25.8
percent-owned by Kria shareholders.
The terms of the transaction have been unanimously approved
by both boards.
"We are very excited with the potential of combining with
Trevali to form the basis of a new mid-tier base metal producer
in the Americas," Kria President and Chief Executive Mike
Hoffman said in a statement after the market closed.
"With near-term cash flow potential coming from our
Halfmile mine in 2011 and from Trevali's Santander towards the
end of 2011, the combined company will be positioned to
strongly fund future growth."
Trevali shares rose 1.8 percent to C$1.70 in Toronto on
Thursday before they were halted near midday pending news.
Kria shares were unchanged at 25 Canadian cents before they
were also halted.
(Reporting by Pav Jordan; editing by Rob Wilson)