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Friday 2nd March 2012 |
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Widespread Portfolios, whose investments include NZAX-listed Chatham Rock Phosphate, may get a new major partner in its Vietnamese copper and nickel project and is hopeful of sourcing fresh funds for the venture.
Swiss-based mining investment company Pala Investments has signed a subscription agreement to buy stock and warrants of Toronto Stock Exchange listed Asian Mineral Resources stock, which would give it 50.3 percent of the company for C$4.3 million. Once the deal is completed, Pala will appoint two directors to the board and secure rights to subscribe to additional securities.
Pala is offering to pay 6 Canadian cents per share, a premium on the 5 cents the stock last traded at on the TSX. The warrants will have an exercise price of 10 Canadian cents per share.
Widespread holds 18.2 percent of AMR, which is developing a nickel and copper project north-west of Hanoi in Vietnam.
Managing director Chris Castle said if the deal goes ahead, the Vietnamese project “may be in a significantly better position than it has been for at least the last two years as the new major shareholder will bring management expertise and improved access to funding to the table.”
The agreement is subject to due diligence and regulatory and shareholder approval. It has a closing date of July 6.
Widespread shares last traded at 11 cents on Feb. 29, and have shed 31 percent this year.
BusinessDesk.co.nz
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