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Nexa Resources to Acquire Karmin Exploration in Friendly Offer

Mining News - Published on Wed, 28 Aug 2019

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Karmin Exploration Inc announced that the Company has entered into a definitive arrangement agreement with Nexa Resources SA pursuant to which Nexa will acquire all of the issued and outstanding shares of Karmin by way of statutory plan of arrangement. Under the terms of the Transaction, Karmin shareholders will receive USD 69.3 million or approximately USD0.77 (being CAD 1.02 at the date hereof) in cash on a fully diluted basis for each Karmin share held. In addition, Nexa will provide to Karmin a USS 700,000 demand loan to cover certain expenses of the Transaction the excess amount of which, if any, following the completion of the Transaction will be transferred to SpinCo. The cash consideration per Karmin share represents an approximately 28% premium to Karmin's closing price on the TSX Venture Exchange on August 26, 2019 and a 36% premium to the 20-day VWAP. The cash offer is not subject to a financing condition and will be funded through Nexa's existing cash reserves.

David Brace, President and Chief Executive Officer of Karmin, said “We are very pleased to announce this transaction, which represents the fair value of Karmin's share price. After conducting a thorough strategic review, we believe the Transaction maximizes value for our shareholders.”

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Posted By : Rabi Wangkhem on Wed, 28 Aug 2019
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