Business
Fancamp and ScoZinc Announce Business Combination to Advance the Scotia Zinc & Lead Mine to Commercial Production
Montreal, Quebec and Halifax, Nova Scotia--(Newsfile Corp. - February 18, 2021) - Fancamp Expl...
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[{"type":"text","content":"Fancamp and ScoZinc Announce Business Combination to Advance the Scotia Zinc & Lead Mine to Commercial ProductionMontreal, Quebec and Halifax, Nova Scotia--(Newsfile Corp. - February 18, 2021) - Fancamp Exploration Ltd. (TSXV: FNC) (\"Fancamp\") and ScoZinc Mining Ltd. (TSXV: SZM) (\"ScoZinc\") are pleased to announce that they have entered into a definitive arrangement agreement (the \"Arrangement Agreement\") whereby Fancamp will indirectly acquire all of the issued and outstanding securities of ScoZinc by way of a plan of arrangement (the \"Arrangement\") under the Business Corporations Act (British Columbia) (the \"Combination\" or the \"Transaction\").Pursuant to the terms of the Arrangement Agreement, shareholders of ScoZinc (the \"ScoZinc Shareholders\") will receive 6.0 common shares of Fancamp (each whole share a \"Fancamp Share\") for every ScoZinc Share held (the \"Exchange Ratio\"). Upon the closing of the Transaction, former shareholders of ScoZinc will hold 33.7% of the Fancamp's common shares outstanding. The Exchange Ratio represents a premium of 5.9% based on the 30-day volume weighted average price of ScoZinc and Fancamp's shares traded on the TSX Venture Exchange for the period ended February 12, 2021.Rajesh Sharma, Interim CEO of Fancamp, said: \"ScoZinc's Scotia Mine provides the opportunity for Fancamp to acquire a near-term cash-flow-generating asset while Fancamp continues to advance its exploration and titanium technology strategies. ScoZinc owns a high-quality asset, the zinc-lead Scotia Mine, and Fancamp is pleased to partner with ScoZinc to support and facilitate the securing of financing of this asset in a timely manner so that shareholders can take advantage of the combined strength of the two entities and the current market conditions.\" Mark Haywood, President and CEO of ScoZinc, said: \"Fancamp's strong balance sheet will enable expeditious financing of the Scotia Mine to bring it to production. With ScoZinc's offtake financing opportunities now advanced to Letters of Intent, the Transaction effectively positions the Scotia Mine to be fully financed for a re-start of commercial operations. With Fancamp acquiring all ScoZinc's assets, interests and securities at a slight premium to our 30-day VWAP, the Combination principally represents a much less dilutive method of financing the Scotia Mine, and...