Gold miner Gold & Resource Developments NL has announced plans to absorb associate Minproc Engineers Ltd through a friendly cash and scrip merger.

GRD, which was formed last year through the merger of Union Gold Mining Co and Macraes Mining, said on Friday it would offer one convertible redeemable preference share and 14¢ cash for every two Minproc shares it did not already own. The preference shares earn an annual dividend of 8.4¢ each.