Proposed change to Toledo share arrangement in BNC strategically important

AIM-listed Toledo Mining has proposed to change its share arrangement in Berong Nickel Corporation (BNC).

AIM-listed Toledo Mining has proposed to change its share arrangement in Berong Nickel Corporation (BNC).

The company is proposing to sell its indirect interest in Berong Nickel Corporation for $6.55m and acquire a direct interest in Berong Nickel Corporation from ENK for the same value.

Although Toledo's overall interest in the Berong Nickel Corporation will not materially change as a result of the proposed transactions, it is expected to be an important step for Toledo to have greater representation on the BNC Board through an increased direct holding.

Further, having DMCI Mining as a partner in BNC is expected to be viewed as a significant advantage for the next stage of development for BNC.

Toledo Mining Corporation further announced that, following discussions with DMCI Mining Corporation, it has exchanged contracts for the sale of a 31% shareholding in Nickeline Resources to DMCI Mining.

Victor Kolesnikov, Chief Executive Officer of Toledo Mining, said: "I am delighted that the agreements have been finalised under which the company will be receiving payment of $6,552,000 from DMCI Mining for the sale of the indirect interest in BNC and the parties have agreed that Toledo will use these proceeds to settle the $5,896,800 balance of purchase price payable to ENK for the 18.7% stake in BNC".

Toledo Mining Corporation's share price was up 0.83% to 30.25p at 08:00 on Wednesday morning.

MF

Recommended

Share tips of the week – 24 September
Share tips

Share tips of the week – 24 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
24 Sep 2021
Three strong Asian stocks trading at bargain prices
Share tips

Three strong Asian stocks trading at bargain prices

Professional investor Nitin Bajaj of the Fidelity Asian Values investment trust picks three stocks that dominate their industries, earn good returns o…
20 Sep 2021
Why it pays to face up to your investment mistakes
Investment strategy

Why it pays to face up to your investment mistakes

Buying stocks can be a complicated business. But selling stocks can be tricky, too – even if you sell for the right reasons. Max King explains how to …
17 Sep 2021
Share tips of the week – 17 September
Share tips

Share tips of the week – 17 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
17 Sep 2021

Most Popular

Two shipping funds to buy for steady income
Investment trusts

Two shipping funds to buy for steady income

Returns from owning ships are volatile, but these two investment trusts are trying to make the sector less risky.
7 Sep 2021
Should investors be worried about stagflation?
US Economy

Should investors be worried about stagflation?

The latest US employment data has raised the ugly spectre of “stagflation” – weak growth and high inflation. John Stepek looks at what’s going on and …
6 Sep 2021
The times may be changing, but don’t change how you invest
Small cap stocks

The times may be changing, but don’t change how you invest

We are living in strange times. But the basics of investing remain the same: buy fairly-priced stocks that can provide an income. And there are few be…
13 Sep 2021