Goldbrook to get $100M offer from Chinese partner Jilin Jien
Reuters Jan 20, 2012 – 12:48 PM ET
Ron D'Raine/Bloomberg
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By Aftab Ahmed
Goldbrook Ventures Inc. said privately held Chinese partner Jilin Jien Nickel Industry Co. has agreed to make a $100-million offer to buy the Canadian miner.
Jilin Jien’s 39 cents a share proposal represents a premium of about 59% to Goldbrook stock’s closing price of 24.5 cents on the Toronto Venture Exchange on Thursday.
Goldbrook is engaged in the exploration and development of nickel, copper, platinum sulphide deposits.
Under the agreement, Goldbrook’s board have the option to terminate the deal in favour of a superior proposal by paying a fee of $3-million and subject to Jilin Jien’s right to match the offer.
Goldbrook owns 25% in Nunavik Nickel Project in the Jilin Jien’s majority owned project in Canada.
Jilin Jien has also agreed to lend $2-million to Goldbrook as interim funding. The companies have decided not to proceed with litigation and arbitration proceedings between them, subject to the completion of the offer.
Shares of the Vancouver, British Columbia-based company were up 41% at 34.5 cents in midday trade on Friday.
© Thomson Reuters 2012
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