WATERDOWN, Ont. - Kerry Holdings Ltd. and MCS Holding LLC plan to acquire QGX Ltd. (TSX:QGX), a miner operations in Mongolia, in an offer valued at $259 million.

Shareholders of QGX representing approximately 42 per cent of the firm have agreed to tender to the $5-per-share cash offer.

The board of directors of QGX has also unanimously recommended the deal, which includes a $9.1 million break fee and is expected to close in September.

QGX's two most advanced properties are the Baruun Naran and the Golden Hills projects in Mongolia. Barrick Gold Corp. (TSX:ABX) holds a nine per cent stake in the company, which is based in Waterdown, Ont.

Kerry is a private investment holding company incorporated in Hong Kong, with diversified businesses throughout the Asia Pacific Region. MCS is one of the largest private sector companies in Mongolia, with over 3,200 employees.

Shares in QGX, which had been halted pending news, rose 38 cents or more than eight per cent on the TSX to $4.88, with 2.5 million changing hands.

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