Shareholders of Nord Resources (NRDS-O) have approved a takeover bid by London-listed Platinum Diversified Mining (PDM-L), which should allow Platinum Diversified to be readmitted to trading on London’s Alternative Investment Market.
Shareholders of Platinum Diversified had approved the merger on Dec. 13, a scheme under which Nord would merge with a U.S.-based subsidiary of Platinum Diversified. Nord shareholders are to receive a cash distribution for the assets of the company.
Platinum Diversified is paying US$60 million for Nord, less a US$3 million holdback and subject to adjustments based on Nord’s balance sheet. Nord’s debt and current liabilities will count against the price, and its cash in favour, and Nord has previously estimated that shareholders will get US$1.20 per share.
The holdback becomes payable in six months, and is estimated at US7 per share.
Nord’s principal asset is the Johnson Camp copper deposit in southeastern Arizona, where a proven and probable reserve of 35 million tonnes grading 0.39% copper has been established. There is a resource of 136 million tonnes grading 0.37% copper, including the reserve.
Platinum Diversified is hoping to put Johnson Camp into production some time in 2007.
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