Salave Gold Mine
Salave Gold Mine in Spain Austur Gold

Gold-Ore Resources Ltd. is buying Astur Gold Corp. in a $150 million all-stock deal that will create a gold producer focused on Spain and Sweden.

Under terms of a deal approved by the boards of both companies, each Astur Gold shareholder will receive 2.35 common shares of Gold-Ore for each common share of Astur Gold, and the combined company will affect a 3-for-1 roll back of its issued and outstanding shares.

Both companies, whose shareholders must still approve the deal, have their headquarters in Vancouver, British Columbia.

Gold-Ore Resources is a gold producing company focused on Sweden. Its primary asset is the Bjorkdal Gold Mine, which has produced 1,050,000 ounces in the last 24 years.

Astur Gold is developing its 100-percent owned Salave Gold Project in Asturias, northern Spain, which it bought from Lundin Gold. Salave is one of the largest undeveloped gold deposits in Western Europe, the company said in a statement.

The new company, to be called Astur Gold Corp., will have combined reserves and measured and indicated resources of approximately 2.6 million ounces of gold and combined inferred resources of approximately 1 million ounces of gold.

The CEO of the new company will be Cary Pinkowski, founder and current CEO of Astur Gold.

Shares of Gold-Ore Resources were down 6 percent in midday trading while shares of Astur Gold were up 4 percent.