European Nickel and Rusina merger satisfies due diligence, deal expected to complete in May

European Nickel (AIM, PLUS: ENK) and Rusina Mining NL (AIM: RMLA, ASX: RML) announced that they have satisfied the due diligence conditions of their proposed merger. The transaction is now expected to complete in May 2010. In February European Nickel signed an agreement to acquire Rusina in an equity-based deal, with a capped value of up to 27.1m.

"We are pleased to report passing the first milestone for this transaction. The scheme booklet is now being prepared and is due to be mailed to Rusina shareholders in early April 2010, allowing shareholders to vote on the transaction in early May 2010", Rusina MD Robert Gregory commented.

The Rusina directors have unanimously recommended that Rusina shareholders vote in favour of the proposed scheme, and in the absence of a superior proposal, each director intends to vote in favour of the transaction in respect of the Rusina shares they own or control at the date of the scheme meeting.

The two companies have been developing the joint venture Acoje nickel project in the Philippines. Under the current agreement, European Nickel is providing its heap leach technology and contributing US$10 million towards adefinitive feasibility study, to earn a 40% interest in the Acoje project.

The merger with Rusina is a logical transaction which will secure Acoje's future, consolidates our asset base in the Philippines and strengthens the management team. The heap leach trial site has finished construction and a 3,000 tonne ore sample will be processed, European Nickel MD Simon Purkiss commented in the yesterdays full-year results.

Upon completion, the current Rusina shareholders will own approximately 27.3% of the enlarged company.

In a previous joint-statement the companies said the combined company would benefit from synergies such as the improved access to development capital through an enlarged balance sheet, a strengthened management team and geographical and project diversification across Turkey, the Philippines and Albania.

http://www.proactiveinvestors.co.uk/companies/news/13889/european-nickel-and-rusina-merger-satisfies-due-diligence-deal-expected-to-complete-in-may-13889.html