M&As this week: Cobalt 27 Capital, Nevsun Resources, Defiance Silver
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M&As this week: Cobalt 27 Capital, Nevsun Resources, Defiance Silver

04 Jan 2019

Cobalt 27 Capital has entered a scheme implementation agreement (SIA) with Highlands Pacific to acquire all the issued ordinary shares of the latter to create a high-growth, diversified battery metals streaming and royalty company.

Cobalt 27 Capital has entered a scheme implementation agreement (SIA) with Highlands Pacific to acquire all the issued ordinary shares of the latter to create a high-growth, diversified battery metals streaming and royalty company.

To be implemented through a scheme of arrangement (SoA), the deal will include the acquisition of shares for an all-cash offer price of A$0.105 ($0.07) a share.

Cobalt 27 will gain direct interest in the Highlands’ Ramu nickel-cobalt mine and exposure to the entire nickel and copper produced by the site, through the transaction.

Cobalt 27 Capital is a Canadian electric metals investment company, while Highlands Pacific is an Australian mining and exploration company.

Nevsun Resources has agreed to Zijin Mining Group’s C$1.86bn ($1.41bn) acquisition offer.

Zijin Mining will acquire all the issued and outstanding common shares of Nevsun for C$6 ($4.4) a share.

The transaction involves the acquisition of 276.8 million Nevsun common shares, representing approximately 89.37% of the total issued and outstanding Nevsun shares on a fully diluted basis.

Based in Canada, Nevsun Resources fully owns the high-grade copper-gold Timok Upper Zone and 60.4% of the Timok Lower Zone in Serbia.

“Zijin Mining will acquire all the issued and outstanding common shares of Nevsun for C$6 ($4.4) a share.”

Zijin Mining Group is a China-based mining company that specialises in gold, copper, zinc, and other mineral resource exploration and development.

Defiance Silver (Defiance) and ValOro Resources have agreed to merge and create a diversified exploration company named Defiance Silver Corp.

The new company will work on an advanced portfolio of Mexican silver and gold projects.

Defiance shareholders will own 86.07% or 120 million outstanding common shares of the new company, while the remaining shares will be held by the former shareholders of ValOro.

Both based in Canada, Defiance Silver is engaged in the exploration and development of silver, while ValOro Resource is a mineral exploration and development company.

Aurcana Corporation has completed the acquisition of Ouray Silver Mines, in continuation to an arrangement agreement entered last September with LRC-FRSM and LRC-FRSM II (collectively the LRC Group).

Aurcana has issued 83 million new common shares to the shareholders of LRC Group in exchange for the issued and outstanding shares of common stock of Ouray on a debt-free basis, under the plan of arrangement.

In addition, Aurcana has agreed to consolidate its shares on a 5:1 basis and purchase certain equipment owned by an affiliate of Orion Mine Finance in exchange for $500,000 and 23.9 million pre-consolidated Aurcana shares.

Aurcana is a Canadian mining company, while LRC Group is a Cyprus-based privately held investment and management firm.