UPDATE 1-Mercator to buy Creston Moly in C$195 mln deal

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April 12 (Reuters) – Canadian miner Mercator Minerals Ltd
said it will buy Creston Moly Corp in a
cash-and-stock deal valued at about C$195 million ($204.0
million) to boost its copper and molybdenum resources.

Creston shareholders will get 0.15 of a common
share of Mercator and 8 Canadian cents in cash for each share
held.

The offer price of 63 Canadian cents represents a premium of
38 percent to Creston’s Monday closing on the Toronto Venture
Exchange.

Creston owns interest in El Creston, an advanced
development-stage moly-copper project in Sonora, Mexico.

Bruce McLeod, current chief executive of Creston, will
become CEO of the combined company.

The deal provides for payment of a termination fee of C$5.5
million to Mercator and payment of an expense reimbursement fee
of C$5.5 million to Creston if the proposed transaction is not
completed in certain specified circumstances.

Shares of Vancouver-based Mercator Minerals, a copper,
molybdenum and silver miner, closed at C$3.69 on Monday on the
Toronto Stock Exchange.
($1 = 0.956 Canadian dollar)
(Reporting by Bhaswati Mukhopadhyay; Editing by Gopakumar
Warrier)

UPDATE 1-Mercator to buy Creston Moly in C$195 mln deal