Aurora Platinum (ARP-V) shareholders have voted 83% in favour of being acquired by Sudbury miner FNX Mining (FNX-T).
The approval came at the company’s special meeting of shareholders on June 20; the Supreme Court of British Columbia approved the plan two days later. FNX’s friendly bid for Aurora needed the support of at least 66% of the votes cast at the meeting.
Under the plan of arrangement, Aurora shareholders are offered 0.1918 of an FNX share for each Aurora share tendered. In the end, FNX would need to issue 4.3 million shares to acquire all of Aurora’s issued and outstanding shares.
In a separate deal, FNX’s Sudbury joint-venture partner Dynatec (DY-T) will take an indirect half-interest in Aurora immediately following the acquisition by paying FNX more than $12.2 million in cash accompanied by around 7.7 million shares.
The deal is expected to close on July 1.
Aurora’s key asset is a 60% stake in the historic Falconbridge mine property, which produced 33 million tons averaging 1.58% nickel and 0.89% copper. In particular, the Falconbridge East mine produced 8.7 million tons grading 1.15% nickel and 0.76% copper.
Combined, the two mines are estimated to contain 1.6 million tons of “proven” ore grading 1.5% nickel, 0.92% copper and 0.07% cobalt. There are also 790,000 tonnes of “possible” material grading 1.25% nickel, 0.75% copper and 0.06% cobalt. These estimates do not conform to the standards of National Instrument 43-101.
Falconbridge (FL-T) itself owns the remaining 40% of the property.
Aurora also holds a 16.8% stake in Lake Shore Gold (LSG-V), and a 20.6% interest in Superior Diamonds (SUP-V).
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