The whispered auction for Anglo American’s (AAUK-Q) Canadian operation, Hudson Bay Mining and Smelting, has ended with junior Ontzinc (OTZ-V) bidding $325 million for the assets.
Hudson Bay, which had been rumoured to be on the block for several months, produces copper, zinc, and byproduct metals from its Flin Flon, Man., smelter and from mines in northern Manitoba and Saskatchewan.
Ontzinc, which has a market capitalization around $14 million and had about $3.1 million in cash at the end of June, said it planned to raise some of the funds for the purchase through an equity offering and the rest from debt financing. The purchase remains conditional on Ontzinc raising the money to do the deal.
The company said it would consolidate its shares (most recently traded at 8) and change its name to Hudson Bay International Minerals after the transaction.
Anglo American said it expects the sale to close near year-end provided Ontzinc can raise the necessary funds.
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