Nyrstar NV ("Nyrstar" or the "Company") today announces that it has entered into a Share Purchase Agreement (the "Agreement") to sell its Campo Morado mine in Mexico to Telson Resources Inc. ("Telson") and Reynas Minas S.A. de C.V. ("Reynas Minas") for a total cash consideration of USD 20 million (the "Consideration"), plus the potential for additional future proceeds through the creation of a new royalty on the Campo Morado mine (the "Transaction").
Telson is a Canadian based junior resources company and trades on the TSX Venture Exchange under the symbol TSN. Pursuant to the Agreement, Telson will own 99.9% of the purchased shares while Reynas Minas, a Mexican based mining consulting company, will own the other 0.1%.
The Consideration payable to Nyrstar consists of USD 0.8 million that was paid to Nyrstar upon signing the Agreement, USD 2.7 million payable in cash by the closing of the Transaction, and USD 16.5 million payable in cash on or before the 12 month anniversary of the closing of the Transaction. Closing of the Transaction is subject to customary closing conditions and is expected to occur by Q3 2017.
BMO Capital Markets Limited and Lazard & Co. are acting as financial advisors to Nyrstar in connection with the Transaction.
Nyrstar is a global multi-metals business, with a market leading position in zinc and lead, and growing positions in other base and precious metals, which are essential resources that are fuelling the rapid urbanisation and industrialisation of our changing world. Nyrstar has mining, smelting and other operations located in Europe, the Americas and Australia and employs approximately 4,300 people. Nyrstar is incorporated in Belgium and has its corporate office in Switzerland. Nyrstar is listed on Euronext Brussels under the symbol NYR. For further information please visit the Nyrstar website: www.nyrstar.com.
For further information contact:
Anthony Simms Group Manager Investor Relations T: +41 44 745 8157 M: +41 79 722 2152
E: [email protected]
Franziska Morroni Group Manager Corporate Communications T: +41 44 745 8295 M: +41 79 719 2342
E: [email protected]
Original Article: http://www.nyrstar.com/investors/en/news/Pages/2099995.aspx