Viking Ashanti announces new terms for Auminco merger
PERTH (miningweekly.com) – ASX-listed Viking Ashanti has amended the terms of its merger with Auminco Mines.
In November, Viking announced that it would issue more than 129.7-million shares to Auminco shareholders, resulting in that company holding a 59% interest in the enlarged entity, with Viking’s current shareholder base retaining a 41% interest.
However, the miner said on Friday that discussions with Auminco had resulted in revised merger terms.
Under the new agreement, Viking would acquire Auminco in exchange for 81-million shares and 27-million unlisted options, exercisable at 12c each for a term of 30 months.
Viking would also issue three-million unlisted options exercisable at 20c each on or before November 2016.
The amended offer would see Viking shareholders owning a 53% interest in the combined company, while Auminco shareholders would hold a 47% interest.
The merger is subject to a number of conditions, including due diligence by both parties and shareholder and government approval. The merger is also conditional on Viking raising no less than A$4.5-million in equity capital.
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