Cardero Resource Corp. (TSX:CDU) says it will acquire all outstanding shares of privately-held Coalhunter Mining Corp.

Cardero, which operates mines in Mexico and Peru, currently owns about 45.5 per cent in British Columbia-based Coalhunter.

Cardero will issue 0.8 of a common share for each outstanding common share of Coalhunter, and pay about $2.1 million, but the exact amount will not be known until the transaction is complete on May 31.

The transaction still requires court, regulatory and shareholder approval.

Coalhunter owns a 75 per cent interest in the Carbon Creek metallurgical coal deposit in B.C., which is estimated to hold 120.4 million tonnes of coal.

Michael Hunter, president and CEO of Coalhunter, will become president of Cardero. Hendrik Van Alphen will continue to be Cardero's CEO.