19/12/2008 - 14:35

Condor Nickel to merge with Chihong

19/12/2008 - 14:35

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Perth-based Condor Nickel has agreed to merge with its shareholder, Chinese controlled Chihong International Mining, with the merged entity to have a host of projects across Western Australia.

Condor Nickel to merge with Chihong

Perth-based Condor Nickel has agreed to merge with its shareholder, Chinese controlled Chihong International Mining, with the merged entity to have a host of projects across Western Australia.

Chihong is an unlisted Australian company whose principal shareholders are China Yunnan Metallurgical Group and its subsidairy, Chihong Zinc and Germanium Mining Company.

Earlier this year, Chihong subscribed for 10 million shares at 20 cents each in Condor's $6.2 million initial public offer.

Under the merger deal, Condor will issue 140 million fully paid shares to Chihong in exchange for all of the issued capital of Chihong and its entitlement to participate in a capital repayment.

Chihong's current holding of 10 million shares will be returned to treasury and cancelled following the merger.

The 140 million issued shares represent 72.16 per cent of the total issued shares of the combined group's 194 million shares.

Should the merger be approved, Condor said it will start a repayment of capital of four cents per share to all Condor shareholders.

On completion of the merge, the combined group will change its name to Chihong International Mining and will be based in Sydney.

The deal will need approval from shareholders in Condor and Chihong, board approval from the Yunnan group, the Chinese government and the Foreign Investment Review Board.

Shares in Condor last traded at six cents before placed in a trading halt, and had a market capitalisation of $2.8 million.

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