Business
Acquisition of Duluth Metals Limited
Acquisition of Duluth Metals Limited.
About this update from Antofagasta Plc
[{"type":"text","content":"\n \nRNS Number : 9928V Antofagasta PLC 03 November 2014 \n \n\n \n \nFor immediate Release, 3 November 2014\nAcquisition of Duluth Metals Limited\nAntofagasta plc announces that its wholly owned subsidiary, Antofagasta Investment Company Limited (\"Antofagasta\"), has entered today into a binding letter agreement pursuant to which Antofagasta has agreed to acquire all of the issued and outstanding common shares of Duluth Metals Limited (\"Duluth\") (TSX:DM) for an all-cash consideration of C$0.45 per share. Antofagasta will, as part of this agreement, fund the liquidity requirements of Duluth through to closing of the transaction.\nThe total consideration of the offer, excluding the outstanding shares currently owned by Antofagasta and the Bridge Loan provided by Antofagasta to Duluth and including Duluth's outstanding convertible debenture, is approximately C$96 million. The offer price represents a premium of approximately 49% to the 90-day VWAP of Duluth common shares for the period ending 31 October 2014. Antofagasta currently owns 14.2 million common shares, or 10.4% of shares currently outstanding.\nAntofagasta (40%) and Duluth (60%) are currently joint venture partners in Twin Metals Minnesota LLC (\"TMM\"), which is focused on developing a copper-nickel-cobalt-platinum-palladium-gold-silver project in the Duluth Complex in north-eastern Minnesota, USA. The...