Metall proposes Minnova takeover

A proposal has been made by Metall Mining (TSE) to acquire all of the shares of Minnova (TSE) that it does not own at a price of one Metall common share and $4 for each Minnova common share.

Metall acquired its current 50.4% interest in Minnova from Kerr Addison Mines.

Under the proposal, Metall would also assume Minnova’s $65 million of convertible subordinated debentures and debentureholders would become entitled to convert their debentures into Metall common shares at $23.50 per share.

Minnova’s board of directors has formed a “special independent committee” to consider the Metall proposal.

Metall is proposing an amalgamation, which would require the approval of Minnova’s minority shareholders. Metall and Minnova said they expect that the proposal could be presented at the Minnova annual meeting April 26. Common shares of the Metall and Minnova were recently trading on the TSE were $12.13 and $14, respectively.