West Perth-based miner and explorer NuStar Ltd and Canadian gold and silver miner Intrepid Minerals Corporation have received key statutory consents enabling the proposed merger of the two companies to progress.
The company said in its announcement that since the merger agreement was signed, the share price of both companies had appreciated significantly, potentially giving rise to a substantial capital gains tax liability for many Intrepid shareholders.
This prompted the companies to implement changes to the transaction structure aimed to ensure that a capital gains tax event was not an immediate consequence of the merger.
The commercial terms of the transaction are unchanged.
The Australian Stock Exchange has reviewed the proposed merger structure and provided the necessary waivers and consent for NuStar to call a meeting of shareholders to approve certain elements of the transaction.
Following a routine hearing in the Ontario Superior Court on 2 May 2006, orders were issued authorising Intrepid to proceed with a meeting of shareholders to consider and approve the merger with NuStar via a plan of arrangement.
The Toronto Stock Exchange has approved the Canadian listing of NuStar shares, which will take place upon implementation of the merger.
The company will remain listed on the ASX with its shares fungible between the two exchanges.
With these key approvals obtained, NuStar and Intrepid are now preparing for shareholder meetings to take place in June.
The merger of the two companies is expected to take effect from 1 July 2006.
NuStar said the merged company would be ideally positioned to capitalise on the current strength in gold and silver prices.
At 930 WST, shares in NuStar were at 11.5 cents.
