Sun Metals to Acquire Lorraine Copper
Published: February 11, 2019 |
Sun Metals Corp has agreed to acquire, through a wholly owned subsidiary, all of the issued and outstanding shares of Lorraine Copper Corp by way of a plan of arrangement. Sun Metals is currently earning a 100 percent interest in Lorraine’s wholly-owned Stardust polymetallic project in north-central British Columbia.
The benefits of the transaction are expected to include the elimination of a significant discount in the trading price of Lorraine shares relative to the market value of Sun Metals’ interest in Stardust.
Under the arrangement shareholders of Lorraine will receive 0.54 of a Sun Metals common share for each Lorraine share held.
The arrangement values Lorraine at approximately $0.24 per share, representing a premium of approximately 40 percnt, based on the closing price of the shares on February 1, 2019.
Investors reacted by sending Lorraine shares up 14.71 percent or $0.025 to 19.5 cents on volume of 1.96 million shares. The shares trade in a 52-week range of 22 cents and $0.07.
Lorraine Metals is currently advancing two copper-gold projects and one copper-molybdenum project in B.C.
To stop by Sun Metals’ website, CLICK HERE
To stop by Lorraine Copper’s website, CLICK HERE
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