Uru Metals has completed its previously announced divestment of its wholly owned subsidiary Zebediela Nickel Company to Blue Rhino Capital.
The deal was first announced in January 2021 when Uru signed a letter of intent (LoI) to sell the company to Blue Rhino, which secured conditional acceptance from the TSX Venture Exchange for the transaction last month.
With the deal now complete, Blue Rhino has now changed its name to ZEB Nickel. It will also begin trading under a new ticker symbol ZBNI.
Zebediela Nickel Company was involved with the development of the Zebediela Nickel Project in South Africa.
The project is located in the Limpopo province, near the platinum mining town of Mokopane. In 2012, a preliminary economic assessment (PEA) reported inferred and indicated resources (Non-JORC) of more than 1.5 billion tonnes at the site.
Uru Metals CEO John Zorbas said: “The transaction with Zeb Nickel provides much-needed capital for the continued development of the Zebediela Project. Uru remains committed to the Zebediela Project, which the board believes can become a globally significant nickel deposit.
“This transaction delivers a lower cost of capital and resultant dilution to Uru shareholders than a direct placing by Uru to raise funds given the low valuation of the company on AIM.
“Uru’s technical team led by Richard Montjoie will continue to lead the efforts on the advancement of the Zebediela Project and following the transaction, Uru is the majority shareholder of ZEB Nickel.”
Uru now holds 41 million common shares in ZEB Nickel through its wholly owned subsidiary Floza Capital Management, subject to customary escrow provisions.