The downtrodden gold mining sector has a new M and A deal to get excited about this morning, and this transaction is centred around creating a mid tier producer focused on Peru.

Alex Black's Rio Alto Mining is buying Stan Bharti's Sulliden Gold for roughly $300 million in stock which values Sulliden at approximately $1.12 per share, a 43.4% premium to yesterday's closing price. The combined company will have near term production potential of 300,000 ounces.

Full details of the transaction: Rio Alto and Sulliden to combine to create a leading Americas focused mid-tier gold producer

Reuters coverage: UPDATE 1-Rio Alto to buy Sulliden to create Peru-focused gold miner.

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