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Argentina-focused Patagonia Gold said it had agreed to be acquired by Canada's Hunt Mining in a reverse takeover deal for around £17.2m.
The offer involved a share-for-share exchange offer at a ratio of around 10.76 new hunts shares in exchange for each scheme share.
The exchange ratio attributed an implied value for the entire issued share capital of Patagonia Gold of around £17.2m, based on the closing price of C$0.115 per Hunt Share on Thursday.
The deal would see Patagonia Gold Shareholders holding 80% of the combined business and Hunt shareholders holding the rest.
'The combination with Hunt represents a highly complementary strategic fit that we believe will enable Patagonia Gold shareholders to benefit as substantial stakeholders in the enlarged entity with a strong platform for future growth and value creation,' chairman Carlos Miguens.