Canada-based nickel miner LionOre Mining International Ltd will delist from the Australian Stock Exchange in June this year, after a steady decrease in the number of LionOre shares on its Australian share register.
Canada-based nickel miner LionOre Mining International Ltd will delist from the Australian Stock Exchange in June this year, after a steady decrease in the number of LionOre shares on its Australian share register.
The company said in an announcement the small number of its shares traded on the ASX no longer justified the financial, administrative and compliance obligations and costs incurred through its listing.
LionOre's primary listing is on the Toronto Stock Exchange, though the company retains listings on stock exchanges in London and Botswana.
LionOre's ASX shareholders will be able to transfer their stock to the TSX under a plan to be sent out shortly, with the company paying all costs of the transfer.
The company is currently in the process of conducting feasibility studies at its Honeymoon Well nickel deposit, and is proceeding with a $57 million expansion at the Black Swan nickel mine, operated by MPI Nickel, in which LionOre holds a controlling stake.
The full text of a company announcement is pasted below
LionOre Mining International Ltd today announced its intention to delist from the Australian Stock Exchange ("ASX") with effect from June 5, 2007.
LionOre's primary listing is on the Toronto Stock Exchange ("TSX"), and there are a number of material differences between the requirements of the TSX Listing Rules and the ASX Listing Rules. To the extent that LionOre is not granted a specific waiver to meet ASX Listing Rule requirements, LionOre is required to fully comply with the ASX Listing Rules. With a limited volume of trading on the ASX, and a limited number of LionOre shares held in Australia, the Company has determined that the financial, administrative, and compliance obligations of maintaining the listing are no longer justified.
The Company originally listed on the ASX to facilitate transactions in Australia, such as its acquisitions of Dalrymple Resources NL (in November 2003) and MPI Mines Limited (in January 2005). Subsequent to the acquisitions, the number of LionOre shares registered on LionOre's Australian share register has steadily decreased and LionOre expects that this trend will continue.
The delisting of LionOre from the ASX is not expected to have any material impact on LionOre's financial position and operating results other than savings in compliance costs associated with maintaining the ASX listing.
LionOre will continue to be listed on the Toronto, London and Botswana stock exchanges.
In conjunction with delisting from the ASX, LionOre has been granted a waiver from ASX Listing Rule 4.3B to the extent necessary to permit LionOre to lodge its preliminary final report for the year ended December 31, 2006 immediately all the information or documents become available, but in any event no later than 75 days after the end of the year.
Holders of LionOre shares registered on LionOre's Australian share register ("Australian Shareholders") will shortly be sent an Information Package providing details of the delisting process, including an overview of the following:
- The share sale facility that will be established to enable Australian Shareholders to sell their LionOre shares during the three month period commencing on the date that LionOre is removed from the official list of the ASX; and
- The arrangements which LionOre has put in place to assist Australian Shareholders to change the register on which their shares are held by transferring those shares to LionOre's Canadian share register. LionOre will pay the transfer costs under the facility.
