Jinchuan offers $150 million in cash for nickel producer Crowflight Minerals
Crowflight Minerals (TSX:CML) has drawn the attention of China's largest producer of nickel, cobalt and platinum - Jinchuan Group - which has launched a $150 million cash offer for the junior nickel produer.
Crowflight Minerals recently restarted nickel production at the Bucko Lake Nickel Mine in Manitoba, and has an assortment of platinum group metals (PGM), nickel and copper projects in Ontario's Sudbury Basin and Thompson Nickel Belt.
Shares in Crowflight Minerals jumped 26.5% on the news to 21.5 cents per share, compared to the partially diluted offer price of 22 cents per shares. On an undiluted basis the offer equates to 26 cents per share, but Crowflight Minerals has a number of convertible securities equal or less than 22 cents.
"The Special Committee will provide further updates regarding its strategic review as such review progresses. There can be no assurance that any transaction with Jinchuan or Pala, or as a result of the Board's strategic review, will be completed on the terms set out herein or at all," Crowflight added.
Jinchuan is become a global mining giant that controls mining, processing, refining and other metal processing and manufacturing lines. It production of nickel ranks fourth in the world; its production of cobalt ranks second in the world; and its mining and processing technology ranks third in the world.
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