Scarborough, Minsec move closer to merger

The proposed merger between the Robert Champion de Crespigny-chaired Scarborough Minerals plc and Perth-based minerals investor Mineral Securities Ltd has taken another step to fruition, with the companies setting out terms of a share exchange ratio today.

If a merger between the two is to take place, the companies announced the deal would be done through a share for share offer on the basis of four shares in the re-structured Minsec for every five Scarborough ordinary shares.

The companies did not confirm the merger would take place, but had earlier announced Mr Champion de Crespigny is likely to chair the merged group, while MinSec chair Keith Liddell would serve as chief executive.

Minsec announced last month it would set up shop in the British Virign Islands in a proposed company restructure supported by Scarborough, in an arrangement that would involve setting up a BVI company to acquire 100 per cent of MinSec shares.

"In effect, existing Mineral Securities shareholders and option holders will exchange their securities in Mineral Securities for similar shares and options in the [new company]," the company said in an announcement at the time.

The company aims to complete its restructure in May.