LONDON (Bloomberg) – Griffin Mining Ltd., a producer of zinc in China, agreed to buy Yukon Zinc Corp. for $89.7 million to expand in Canada.

Investors will receive one Griffin Mining share for every nine Yukon shares held, Bermuda-based Griffin said yesterday.

Yukon, based in Vancouver, owns the Wolverine project in Canada's Yukon Territory that produces zinc, silver, copper, gold and lead, and has a 60 percent interest in the Caijiaying mine in China.

Annual zinc concentrate output from the two mines is likely to exceed $300 million when Wolverine reaches full production, Griffin said.