Opérations et transactions|12 octobre 2011
Canada Fluorspar announces strategic investment with Arkema
Torys acted as counsel to Arkema with a team that included Matthew Cockburn, Huw Evans, Gabi Mandowsky and Corrado Cardarelli (tax).
On October 12, 2011, Arkema SA (EPA: AKE) (Arkema) and Canada Fluorspar Inc. (CFI) announced the closing, in escrow, of the second phase of the previously announced strategic agreement to re-activate CFI's fluorspar project located in St. Lawrence, Newfoundland.
Under the terms of an investment agreement between Arkema and CFI, Arkema will fund $60 million into a newly formed general partnership, Newspar and CFI will fund $14 million into Newspar. In addition, CFI will contribute to the Partnership the mining rights and permits related to the Blue Beach mine, the Tarefare mine, the mill facilities and the tailings pond needed to produce fluorspar (the "Project"). On closing, CFI and Arkema will each have a 50% interest in Newspar. The funds and documentation related to the transactions contemplated by the investment agreement will be released from escrow once the mining licences and leases relating to the Project are transferred into Newspar. In addition, when the escrow condition is satisfied, subscription receipts held by Arkema since June 27, 2011 issued at $0.75 per share will be converted to 10,357,722 common shares and $7.76 million held in escrow will be released to CFI.
As part of the Partnership, CFI and Arkema will each receive a pro rata share of the output at a price equal to the costs of production. In addition, Arkema will have the right to acquire for a period of 10 years, approximately 20% of CFI's share of the output on a pricing basis that includes costs plus a fixed margin and will have the option to acquire additional fluorspar from CFI at market price.
Arkema SA is a France-based company that specializes in the manufacture and marketing of chemical products.
Canada Fluorspar Inc. is a specialty mineral resource company engaged in the development and production of fluorspar deposits at its property located in St. Lawrence, Newfoundland, Canada.
Further information can be found on Marketwire's website.
Under the terms of an investment agreement between Arkema and CFI, Arkema will fund $60 million into a newly formed general partnership, Newspar and CFI will fund $14 million into Newspar. In addition, CFI will contribute to the Partnership the mining rights and permits related to the Blue Beach mine, the Tarefare mine, the mill facilities and the tailings pond needed to produce fluorspar (the "Project"). On closing, CFI and Arkema will each have a 50% interest in Newspar. The funds and documentation related to the transactions contemplated by the investment agreement will be released from escrow once the mining licences and leases relating to the Project are transferred into Newspar. In addition, when the escrow condition is satisfied, subscription receipts held by Arkema since June 27, 2011 issued at $0.75 per share will be converted to 10,357,722 common shares and $7.76 million held in escrow will be released to CFI.
As part of the Partnership, CFI and Arkema will each receive a pro rata share of the output at a price equal to the costs of production. In addition, Arkema will have the right to acquire for a period of 10 years, approximately 20% of CFI's share of the output on a pricing basis that includes costs plus a fixed margin and will have the option to acquire additional fluorspar from CFI at market price.
Arkema SA is a France-based company that specializes in the manufacture and marketing of chemical products.
Canada Fluorspar Inc. is a specialty mineral resource company engaged in the development and production of fluorspar deposits at its property located in St. Lawrence, Newfoundland, Canada.
Further information can be found on Marketwire's website.