Micro cap zinc explorer, Messina Minerals (MMI:TSXV) agreed to be acquired by Canadian Zinc (CZN:TSXV) for shares.  Messina shareholders will receive 1 shares of CZN for each 5.9 shares they hold of MMI which values MMI at around $0.115 per share.  This equates to an approximate 190% premium to the last close of $0.04 per share.  MMI closed up $0.06 per share (or 150%) today.

Messina's 10 year chart (Yahoo Finance)

Messina's 10 year chart (Yahoo Finance)

Although this is far from the nearly $20 per share the company peaked at in early 2006, given the state of the zinc price, this deal appears appropriate.  With this deal, shareholders of Messina avoid any dilution and get to participate in a company with near-term production and also get to keep their interest in the Newfoundland assets.

Here’s the release: Canadian Zinc and Messina Minerals Announce Agreement on Proposed Acquisition and Private Placement

According to insider reports, Messina’s President, Peter Tallman, has the most to gain as he is the largest shareholder with 3.95 million shares (almost 1/3 of the issued and outstanding shares).  Peter is an executive we like the junior space.  He led the exploration program for Ethos Gold (ECC:TSXV) when they were exploring their Betty project, which they have since divested, in the Yukon looking for Kaminak’s Coffee-style deposit.

We will be watching Peter’s next move closely.