Macarthur completes sale of Internickel interest
MacArtur mineral has 18,538,650 soo pnp hold 20% ...of shares $100 mill of 20%..pnp will get .late day rally after this new short covering too bad
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Macarthur completes sale of Internickel interest
2009-01-15 09:31 ET - News Release
Mr. David Barwick reports
MACARTHUR MINERALS LIMITED: MINMETALS SECURES 20% EQUITY (AND RIGHT TO ACQUIREA FURTHER 50% INTEREST) IN LAKE GILES PROJECT
Macarthur Minerals Ltd. (MMS) confirms that LPD Holdings (Aust.) Pty.Ltd. and Minmetals Mining Corp. Ltd. (MMCL) have completed theshare-sale agreement as detailed in the company's news release datedDec. 18, 2008, in Stockwatch, for the sale of 20 per cent ofInternickel Australia Pty. Ltd. (IAPL), which is the beneficial ownerof the Lake Giles project. Following completion, the shareholding inIAPL is now MMS 70 per cent, MMCL 20 per cent and LPD 10 per cent.
Underthe terms of this share transaction, a representative of MMCL, FangGang, has been appointed to the IAPL board, with the LPDrepresentative, Edward Kwok, resigning.
MMCL now holds the rightto acquire a further 50 per cent of IAPL shares from MMS for$100-million and the right to acquire MMS's final 20-per-cent holdingin IAPL for market value up to a maximum of $40-million.
MMCL'sright to acquire the 50-per-cent interest will be subject to MMSshareholder approval, with a meeting to be convened for Feb. 16, 2009.Shareholders will shortly receive the relevant explanatory materialsthat detail the terms of the transaction with MMCL and explain thedifferences from the original transaction with LPD as approved by MMSshareholders on Jan. 31, 2008. Upon receiving shareholder approval,MMCL will have 10 business days to exercise the right to acquire thefurther 50-per-cent interest for $100-million.
Chairman and chiefexecutive, David Barwick, said, "Macarthur Minerals remains committedthat the bulk of the $100-million (after tax), when received, bedistributed to shareholders as a special dividend as soon as possiblefollowing settlement."
It is the intention of the directors toexercise up to 1.1 million of their options, which have an exerciseprice in the range of $1 to $1.60 prior to the record date of theproposed distribution.
In addition, once MMCL has moved to70-per-cent ownership of IAPL, it has the right, but not theobligation, to acquire MMS's remaining 20 per cent of IAPL for anagreed valuation (up to a maximum of $40-million) by Nov. 19, 2009.This right will also be subject to shareholder approval at theshareholder meeting to be held on Feb. 16, 2009.