VANCOUVER - The board of CANICO RESOURCE CORP. has advised shareholders to reject the takeover offer from COMPANHIA VALE DE RIO DOCE (CVRD). The Brazilian mining giant made its offer in September of Cdn$17.50 per Canico share. Canico directors believe the offer is financially inadequate. The Directors' Circular outlining the reasons for rejection is filed at www.sedar.com.
The principal asset of Canico is its Ona Puma laterite nickel project in the Para State of Brazil (see CMJ Net News, Aug. 10, 2005).
Another wrinkle in the story is that INCO owns about 5.73 million Canico shares on a non-diluted basis; FALCONBRIDGE owns another 2.02 million shares. When the two nickel producers complete their merger, Inco will hold a non-diluted 18.7% of Canico.