Aim-listed explorer and developer URU Metals reports that Blue Rhino Capital has completed the acquisition of the Zebediela Nickel Company – a wholly-owned subsidiary of URU.
Blue Rhino has now changed its name to Zeb Nickel and will trade under the new Aim ticker symbol ZBNI upon resumption of trading.
Zeb Nickel and URU will notify shareholders once the date for the resumption of trading has been confirmed.
URU CEO John Zorbas says the transaction with Zeb Nickel provides much-needed capital for the continued development of the Zebediela project. “URU remains committed to the Zebediela project which the board believes can become a globally significant nickel deposit.”
He says the transaction delivers a lower cost of capital and resultant dilution to URU shareholders than a direct placing by URU to raise funds given the low valuation of the company on Aim.
“URU's technical team, led by Richard Montjoie, will continue to lead the efforts on the advancement of the Zebediela project and following the transaction, URU is the majority shareholder of Zeb Nickel,” says Zorbas.
He adds that URU is a long-term and supportive shareholder of Zeb Nickel and the board remains fully focused on developing the project and realising its value for shareholders of both URU and Zeb Nickel.
“We wish the Zeb Nickel team good fortune on their listing and believe the future is bright for both companies,” says Zorbas.
Immediately prior to completion of the transaction, Zeb Nickel completed a consolidation of its issued and outstanding common shares on the basis of one new post-consolidation common share for every 2.3 pre-consolidation common shares. The consolidation reduced the number of outstanding common shares from 5.4-million to 2.34-million.
Also, in connection with the completion of the transaction, Zeb Nickel completed a private placement financing of 11.2-million subscription receipts, at a price of C$0.25 apiece for gross proceeds of C$2.8-million.
The proceeds from the financing were released from escrow, following Zeb Nickel receiving all applicable regulatory approvals and completing the transaction.
URU now holds 41-million common shares in Zeb Nickel through its wholly-owned subsidiary Floza Capital Management, representing about 74.82% of the issued and outstanding common shares of Zeb Nickel.
NEW MANAGEMENT
Following completion of the transaction, the board of directors of Zeb Nickel has been reconstituted to consist of Wayne Isaacs, Tom Panoulias, Anton Drescher, Gregory McKenzie, Jay Vieira (URU nonexecutive chairperson) and Montjoie (URU exploration manager).
The management of Zeb Nickel has also been reconstituted to consist of CEO and corporate secretary Wayne Isaacs and CFO David Cross.
In addition, Martin Vydra will act as a strategic adviser to the board, while Justin Cochrain will be an adviser to the board.