Arcadium shareholders approve $6.7bn sale to Rio Tinto
Shares of Arcadium Lithium rose about 7% in extended trading after the company said that about 98% of its shareholders had voted in favor of the sale.
Fancamp Exploration (TSXV: FNC) has agreed to sell all its rights and interests in the Koper Lake-McFaulds mineral properties, comprising four mining claims located within Ontario’s Ring of Fire, to KWG Resources (CSE: KWG). The entire property package covers 1,024 ha immediately to the east of claims owned by Wyloo Metals containing the Eagles Nest nickel-copper-platinum deposit.
KWG is currently the operator (50% interest) of the Black Horse chromite project, a key part of the Koper Lake-McFaulds property package. The Black Horse discovery was first made by Fancamp in 2011. Later exploration by KWG led to a resource estimate of 85.9 million tonnes grading 34.5% chromium oxide (Cr2O3) in the inferred category for the chromite deposit.
To secure its interest in the Koper Lake-McFaulds claims, KWG will issue to Fancamp a secured convertible promissory note in the principal amount of $34.5 million bearing interest at 6% and matures in four years. It will also issue warrants to purchase a number of KWG shares equal in value to about half of the principal amount.
Fancamp will also receive a 2% net smelter return royalty on any direct or indirect interest in the mining claims held by KWG.
“The proposed transaction simplifies some of the existing joint venture arrangements and will enable KWG to be the clear leader in the advancement and development of the mining claims and, in due course, to help finance this initiative,” Rajesh Sharma, president and CEO of Fancamp, commented.
“The proposed consideration package allows Fancamp to monetize its investment into KWG with marketable securities while providing KWG with an immediate cash injection that will permit KWG to advance various initiatives relating to the mining claims and to assist with their working capital needs,” Sharma added.
To support its development of chromite deposits in the Ring of Fire, KWG has acquired several intellectual property interests, including a method for the direct reduction of chromite to metalized iron and chrome using natural gas.
KWG also holds a 15% vested interest in the McFaulds copper-zinc project and a 30% interest in the Big Daddy chromite project, the latter of which is a joint venture with Wyloo and contains an estimated 29.1 million tonnes grading over 30% Cr2O3 measured and indicated. In addition, KWG owns 100% of CCC, which staked mining claims between Aroland, Ontario, and the Ring of Fire.
To learn more, visit www.kwgresources.com.
