https://www.engineeringnews.co.za

Canada Lithium makes friendly offer for Sirocco Mining

Canada Lithium makes friendly offer for Sirocco Mining

Photo by Reuters

4th December 2013

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

Font size: - +

TORONTO (miningweekly.com) – Canada Lithium and fellow Canadian iodine producer Sirocco Mining on Wednesday announced a friendly business combination aimed at significant market and growth synergies and overall cost savings.

Canada Lithium, which is developing the advanced Quebec Lithium project in Quebec, was offering 294-million common shares, worth about $120-million, to acquire Sirocco.

Sirocco shareholders would receive 1.175 Canada Lithium shares for each Sirocco share, and the arrangement valued each Sirocco share at C$0.48, which represented a premium of about 23% to the 20-day volume-weighted average share price on the TSX on Tuesday.

Following the transaction, Canada Lithium shareholders would hold about 58% of the combined company, while current shareholders of Sirocco would hold about 42%.

Separately, Sirocco had also agreed to provide Canada Lithium with a bridge loan of up to $10-million, for which Sirocco could choose to receive repayment in cash or Canada Lithium shares.

Each party had agreed to a $4-million deal termination fee under certain circumstances.

“We’re delighted to be joining forces with the Sirocco team. They have an exceptional track record in identifying growth opportunities, establishing sound operations and building wealth for shareholders,” Canada Lithium CEO Peter Secker said.

Commenting on the transaction, Sirocco CEO Richard Clark said: “We have been looking for growth opportunities in the industrial minerals sector and this combination provides an excellent opportunity for geographic and product diversification while at the same time aligning two products with potential future complementary applications.”

Sirocco shares traded 14.47% higher at noon on Wednesday at C$0.435 apiece, and those of Canada Lithium were up 1.25% at C$0.405 apiece.

Edited by Creamer Media Reporter

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

The Beneficiation Academy
The Beneficiation Academy

The Beneficiation Academy is a certified training institution that follows all compliance legislation and is accredited with various Sector...

VISIT SHOWROOM 
The Southern African Institute of Mining and Metallurgy
The Southern African Institute of Mining and Metallurgy

The SAIMM started as a learned society in 1894 after the invention of the cyanide process that saved the South African gold mining industry of the...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







301

sq:0.054 0.971s - 140pq - 2rq
Subscribe Now