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Australian court approves ARMZ’s acquisition of Mantra
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26th May 2011
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PERTH (miningweekly.com) − Trading in uranium junior Mantra Resources’ shares on the ASX and TSX would cease at the end of business on Thursday, as the Supreme Court of Western Australia approved the company’s acquisition by Russia’s Atomredmetzoloto (ARMZ).

The scheme of arrangement, under which ARMZ would acquire all the issued shares in Mantra for A$7,02 a share, has now been lodged along with the court order, with the Australian Securities and Investment Commission, making the scheme effective.

ARMZ is paying A$6,87 a share and a dividend of A$0,15 a share on closing of the transaction, valuing the Australia-based Mantra at A$1-billion.

Mantra CEO Peter Breese also said that the board had declared an unfranked dividend of 15c for each share held, with shareholders being paid their dividends within five business days of the implementation date, scheduled for June 7.

Mantra’s flagship project is the Nyota prospect, part of the Mkuju River project, in southern Tanzania, which has a mineral resource of 101,4-million pounds uranium oxide.

A feasibility study on the flagship Mkuju River project has outlined a production of 4,2-million pounds of yellowcake, at a capital cost of $430-million.

TSX-listed Uranium One has the option to purchase Mantra from its 51% shareholder ARMZ within the next two years if it buys 15% of the Australian company for $150-million either by January 2012, or six months after ARMZ has closed the acquisition.


 

Edited by: Mariaan Webb

 

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Picture by: Reuters