Andean Resources (ASX:AND) has been approached by Eldorado Gold Corporation (ASX:EAU) to combine the two companies.
Eldorado says the merger would create the world's fastest growing and lowest cost gold producer.
The proposal put forward to the Andean board is for a share exchange transaction at a fixed exchange ratio of 0.31 of a common Eldorado share for each Andean ordinary share through a friendly transaction.
Eldorado says the offer is extremely compelling for all and would result in Andean shareholders owning around 24 per cent of the combined company.
Andean is a dual listed company whose main asset is the Cerro Negro Gold Project in Argentina.
Andean Resources reported a net loss of $7.24 million for the year to 30 June 2009.
AND Price at posting:
$6.40 Sentiment: None Disclosure: Held
