URU Metals Limited Disposal of the Company's Zebediela Nickel Project (6426G)
July 27 2021 - 8:42AM
UK Regulatory
TIDMURU
RNS Number : 6426G
URU Metals Limited
27 July 2021
27 July 2021
URU Metals Limited
("URU" or "the Company")
Disposal of the Company's Zebediela Nickel Project
URU Metals Limited (AIM: URU) is pleased to announce that Blue
Rhino Capital Corp ("Blue Rhino") has received conditional
acceptance from the TSX Venture Exchange (the "TSX-V") for its
proposed qualifying transaction, being the acquisition of the
Zebediela Nickel Company (Pty) Ltd. ("ZEB"), a wholly owned
subsidiary of URU (the "Transaction").
Pursuant to the Transaction, Blue Rhino will consolidate its
share capital on a 2.3-for-1 basis (the "Consolidation"), following
which it will issue 41,000,000 post-Consolidation common shares
(the "Common Shares") to URU, in consideration for all of the
outstanding share capital of ZEB. Blue Rhino will also assume all
ongoing liabilities and obligations of ZEB, which will include a
2.5% royalty on all revenue generated from the Zebediela Nickel
Project (the "Project"), a mining right application located in the
Limpopo Province in the Republic of South Africa, near the platinum
mining town of Mokopane (the "Royalty"). One percent of the Royalty
can be purchased for a one-time cash payment of US$2,000,000.
Following completion of the Transaction, it is anticipated that
Blue Rhino will change its name to "ZEB Nickel Corp." and it is the
intention of Blue Rhino will continue to carry on the business of
ZEB.
The completion of the Transaction is subject to a number of
conditions, including, but not limited to, receipt of all required
regulatory approvals, including final TSX-V acceptance and
satisfaction of other customary closing conditions. Assuming all
conditions are satisfied, closing of the Transaction is expected to
occur on or about 30 July 2021. The trading symbol of Blue Rhino /
ZEB Nickel Corp will be "ZBNI".
In connection with closing of the Transaction, and due to a high
level of interest, Blue Rhino has decided to increase the size of
its previously announced non-brokered private placement (the
"Concurrent Financing"). The Concurrent Financing will now be for
up to 11,200,000 subscription receipts (each, a "Receipt") at a
price of $0.25 per Receipt for aggregate gross proceeds of
C$2,800,000. All other terms will remain as previously announced by
the Company in its news release dated 3 March 2021.
Mr. Richard Montjoie, a senior employee of URU, will join the
board of Blue Rhino / ZEB Nickel Corp.
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014, incorporated into UK law by the
European Union (Withdrawal) Act 2018 until the release of this
announcement.
For further information, please contact:
URU Metals Limited
John Zorbas
(Chief Executive Officer)
+1 416 504 3978
SP Angel Corporate Finance LLP
(Nominated Adviser and Broker)
Ewan Leggat / Charlie Bouverat
+ 44 (0) 203 470 0470
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END
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