China-focused Griffin Mining has agreed to buy Toronto-quoted Yukon Zinc in a £45.3 million share deal.

The company has also announced the discovery of a ‘second mine’ at its Caijiayjng zinc, lead and gold deposit in China. Under the Yukon Zinc deal, AIM-quoted Griffin is to issue one share for every nine shares in Yukon, whose key project is the Wolverine high-grade zinc, silver, copper, gold and lead project in Canada.

According to Griffin, the deal will create a combined group with nearly £100 million cash, no debt and the prospect of annual group production of 150 million lbs of zinc in concentrates and more than 4.5 million oz of silver.

Griffin shares are 20p up on the deal at 91.5p and should outperform several others in the sector.

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Griffin Mining	AIM	£31.32m	17.25p	0.00p
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Other company articles:
Chinese counter-bid for Yukon			29/04/2008
Exploration Insights			28/04/2008
Griffin in £45m takeover			22/04/2008
Exploration Insights			14/12/2007
China cheer for Griffin			07/09/2007