https://www.miningweekly.com

Sirocco Mining and Canada Lithium to be known as RB Energy

22nd January 2014

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

Font size: - +

TORONTO (miningweekly.com) – Following the business combination of Canada Lithium and fellow Canadian iodine producer Sirocco Mining, the new entity would be known as RB Energy, and not Li-On Minerals Inc as proposed in a notice of a special shareholder meeting and management information circular dated December 24, the companies announced on Tuesday.

The two firms in December 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.

Edited by Creamer Media Reporter

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

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