Strathmore Minerals has agreed to acquire all of the issued and outstanding shares of Saratoga Gold Company for $8.9m.

The company has agreed to issue 1.25 common shares for each common share of Saratoga. Based on 14,604,002 Saratoga shares outstanding, Strathmore will issue 18,255,003 common shares to complete the transaction, under the terms of the deal.

Strathmore Minerals CEO David Miller said the company is very excited about the opportunity to create value for Strathmore’s shareholders outside of its core uranium business, by acquiring the significant gold-copper project.

Saratoga’s main project Copper King Au-Cu includes two leases, totaling 1,120 acres located in the Silver Crown Mining district in Wyoming, US.

Subject to regulatory approvals, the transaction is expected to close before 15 May 2012.