Merger agreement to create diverse asset base
IN a move to deliver significant benefits to both companies, MetroCoal and Cape Alumina have signed a Merger Implementation Agreement (MIA) to create a diversified bauxite and thermal coal business with a staged development pipeline. Under the agreement, MetroCoal would offer 1.12 shares for every Cape Alumina share, in addition to providing Cape Alumina with a $3 million convertible note to supplement Cape Alumina working capital to accelerate work on the Pisolite Hills project, 50km northeast of Weipa in Queensland. The first $1 million would be made available on execution of the MIA, while the further $2 million would be available subject to the approval of Cape Alumina shareholders. Pending all required approvals, the companies reportedly expects the merger to…