Perth, Sep 18, 2009 (ABN Newswire) - Further to Universal Resources Limited (ASX:URL) and Vulcan Resources Limited (ASX:VCN) announcement of 3 September 2009, whereby the groups announced the signing of a non-binding term sheet of a proposed merger. The groups have agreed to amend the term sheet to extend their ability to deal exclusively with each other from the 21st September to the 25th September 2009.
The extension of time is to enable both Universal and Vulcan sufficient time to complete due diligence and preparation of a merger and implementation agreement.
Under the proposed merger, Vulcan shareholders will receive 6.85 Universal fully paid ordinary shares for every one Vulcan fully paid ordinary share.
It is proposed that the merger will be effected by way of a Vulcan scheme of arrangement. It is envisaged that the enlarged Universal will consolidate its shares on a basis yet to be decided.
Should a merger eventuate it will create a significant copper group with advanced development stage projects in Queensland, Australia and in Finland. Definitive Feasibility Studies have been completed for both projects and each has robust financials. The merged group will have a strong cash position given Vulcan's cash on hand of A$28.4 million.
Altona Mining Limited (ASX:URL) is an Australian public company listed on the Mining Board of Australian Securities Exchange (ASX). The Company currently operates only within Australia and is focussed on exploration for and exploitation of base and precious metals, primarily copper and gold. Its major asset is the Roseby Copper Project in the Mt Isa Mineral Province, NW Queensland, Australia.
Contact
Peter Ingram Managing Director Universal Resources Limited Tel: +61-8-9486-8400 Email: pingram@universalresources.com.au
Altona Mining Limited
){kind=link}