Yamana closes Desert Sun acquisition

Yamana Gold (YRI-T, AUY-X, YAU-L) has completed its takeover of Desert Sun Mining (DSM-T, DEZ-X) after court approval of the merger plan.

A Desert Sun shareholders’ meeting approved the plan to merge the company into Yamana on March 31. Under the merger deal, Desert Sun shareholders receive six Yamana shares for every 10 Desert Sun shares. The deal, which valued Desert Sun at around $680 million, will mean Yamana issues 63.9 million shares to Desert Sun shareholders.

Desert Sun’s warrants will be exercisable to buy 0.6 of a Yamana share at $2.50 until November 2008; they will trade as Yamana A-series warrants, under the ticker yri.wt.a-t once stock market approval is complete.