WINNIPEG - HUDBAY MINERALS and Vancouver's SKYE RESOURCES are planning to combine their respective businesses. Of particular interest is the Fenix nickel project belonging to Skye in Guatemala.
Skye common shares are to be exchanged on the basis of 0.61 HudBay common shares for each Skye share. The arrangement represents a 35% premium over Skye's 20-day average trading price and a 17% premium over Skye's closing price on June 20. When the deal is complete, HudBay shareholders will hold 79.7% of the company, and former Skye investors will hold 20.3% of HudBay shares. Pending approvals, the deal should close by the end of August 2008.
Colin Benner, currently vice-chairman and CEO of Skye, will join the HudBay board.
The Fenix project will strategically expand HudBay's base metals portfolio to include nickel and add significantly to its development pipeline, with a project capable of near-term production. A 30-year mine life is anticipated, and there remains a significant opportunity for expansion.
Complete information about In a separate announcement, Skye said VALE INCO has elected not to exercise its pre-emptive financing right in Skye. The Fenix project is available at www.SkyeResources.com.
In a separate announcement, Skye said VALE INCO has elected not to exercise its pre-emptive financing right in Skye.
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