TORONTO – On Wednesday morning, Oct. 5, FNX MINING made a formal announcement that it intends to acquire the interests of DYNATEC CORP. in the Sudbury Joint Venture (25% Dynatec) and AURORA PLATINUM CORP. (50% Dynatec). In return for these interests, FNX will issue 20.5 million common shares valued at $291 million to Dynatec. FNX further agrees to purchase $10 million in Dynatec shares (with certain conditions) the next time Dynatec makes a public offering.
The two companies announced their agreement late Wednesday afternoon. Dynatec will will wind up with a 27% interest in FNX by virtue of the newly issued shares. Part of the deal includes a two-year contract for Dynatec to continue its role as mining contractor for the Sudbury Joint Venture. The deal is subject to regulatory approvals, but should close later this month.
The Sudbury Joint Venture was set up to mine the McCreedy West nickel mine, which it does very profitably. The former mine was bought from INCO by FNX, and Dynatec has been the operator. The venture is also responsible for several other exploration and development projects in the area.
Aurora Platinum’s assets include nickel-copper properties in the Sudbury Basin, other areas of Ontario and Quebec plus interests in Lake Shore Gold and Superior Diamonds and some cash. FNX closed the purchase of Aurora on July 1, 2005, and promptly sold a 50% share to Dynatec for shares and cash.
Details of the proposed transaction are available at www.FNXmining.com.