Universal Resources Limited (ASX:URL) And Vulcan Resources (ASX:VCN) Extend Exclusivity Period Prior To Merger
Perth, Sep 18, 2009 AEST (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.
About Altona Mining Limited
Altona is a cashed up ASX listed company with a record of shareholder returns. It is focussed on the Cloncurry Copper Project in Queensland, Australia.
The Cloncurry Copper Project has resources containing some 1.65 million tonnes of copper and 0.43 million ounces of gold. The first development envisaged is the 7 million tonnes per annum Little Eva open pit copper-gold mine and concentrator.
Vulcan Resources Limited
Altona Mining Limited