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.
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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.
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