Rio Alto To Buy 8.6% Of Sulliden Shares From Agnico Eagle For C$1.10/shr Cash

(RTTNews) - Rio Alto Mining Ltd (RIO.TO, RIOM) announced that it has agreed to buy 26.97 million common shares of Sulliden Gold Corporation Ltd. (SUE.TO), representing 8.6% of Sulliden's basic shares outstanding, from Agnico Eagle Mines Ltd (AEM, AEM.TO) for C$1.10 per share for about C$29.7 million in cash. The purchase of Sulliden common shares is expected to close May 29, 2014.

Rio Alto intends to vote the purchased shares in favour of resolutions approving the Plan of Arrangement pursuant to which Rio Alto proposes to acquire all outstanding shares of Sulliden .

Rio Alto said that the acquisition of Sulliden by Rio Alto will be carried out by way of court-approved Plan of Arrangement with each Sulliden shareholder receiving per Sulliden common share held 0.525 of a Rio Alto common share and 0.10 of a common share in a newly incorporated company ("SpinCo") that will hold Sulliden's 100% interest in East Sullivan Property in Val-d'Or, Quebec and will be capitalized with about C$25 million in either cash or a combination of cash and Rio Alto common shares.

The Arrangement will be subject to approval of at least 66 2/3% of the votes cast in person or by proxy of the shareholders of Sulliden at a special meeting of Sulliden shareholders to be held no later than July 30, 2014 and is also subject to obtaining approval by a majority of votes cast by the shareholders of Rio Alto at a special meeting of Rio Alto shareholders .