Khan Resources offers to buy Western Prospector

PHILADELPHIA, May 11 (Reuters) - Khan Resources Inc (KRI.TO: Quote, Profile, Research) on Sunday offered to buy Western Prospector Group Ltd in a move to consolidate operations and jointly develop uranium deposits in the Saddle Hills district of Mongolia.

Western Prospector shareholders will receive 0.685 share of Khan Resources for each Western Prospector share they own.

The offer represents a premium of 30 percent over the May 9 closing price of Western Prospector common shares on the TSX Venture Exchange, Khan said. Khan shares closed at 95 cents (Canadian) on Friday on the Toronto Stock Exchange.

The acquisition of Western Prospector would result in combined capital cost savings of more than US$100 million due to the construction of one common mill, rather than two mills, and the sharing of infrastructure, Khan said. (Reporting by Jessica Hall; editing by John Wallace) (For more M&A news and our DealZone blog, go to here)