01:22 PM EDT, 04/16/2024 (MT Newswires) -- McEwen Mining ( MUX ) said Tuesday it agreed to acquired Timberline Resources ( TLRS ) for shares worth US$18.8 million. Timberline shares were last seen up 108%.

The friendly acquisition is expected to enhance McEwen's existing portfolio of development and exploration projects in Nevada.

Timberline shareholders receive 0.01 of a McEwen share for each Timberline share, a value of US$0.102 per Timberline share.

McEwen currently owns about 6.3 million Timberline shares, representing a stake of about 3.3% in Timberline and about 6.3 million Timberline warrants.

Excluding McEwen's existing ownership, McEwen expects to issue about 1.8 million shares on closing for a transaction value of US$18.8 million.

Timberline's board has unanimously recommended that Timberline's shareholders approve the transaction.

If Timberline terminates the agreement to accept a superior offer it will be required to pay McEwen a break fee of US$400,000.

Timberline shares were last seen up C$0.07 to C$0.135 on the TSX Venture Exchange while McEwen shares were down C$0.15 to C$15.39 on the Toronto Stock Exchange.