Canada’s Royal Nickel Corporation is buying out private Australian company Salt Lake Mining in exchange for $C10.9 million ($11.5 million) in shares, taking sole ownership of the Beta Hunt gold and nickel mine, near Kambalda.
Royal Nickel controls 66 per cent of Salt Lake, which is chaired by former Moly Mines boss Derek Fisher and acquired Beta Hunt for $10 million in 2013. An overwhelming 99.6 per cent of Royal Nickel shareholders voted in favour of sweeping up the remaining interest in Salt Lake at a meeting in Toronto on Wednesday.
Royal Nickel will shell out 1.8775 shares for each remaining Salt Lake share, or a total of 24.32 million shares, and hopes to complete the deal this month.
The stock was trading at C45¢ on the Toronto Stock Exchange yesterday, with Royal Nickel tripling in value since buying into Beta Hunt in February via a $C7.5 million cash-and-scrip deal.
The company was able to raise $C8.7 million this month to underpin development and a new exploration push at Beta Hunt, which has been mined for nickel since the 1970s. The first significant gold mining since 1985 resumed late last year after the gold rights were negotiated with South Africa’s Gold Fields.
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