The economic downturn has claimed yet another victim. Adriana Resources (ADI-V) announced today that a deal it had struck two months ago with Goldbard Capital (GDB.P-V) to purchase one of its subsidiaries has been cancelled due to current market conditions.
The two companies had agreed in early September that Goldbard would acquire all of the shares of MIE Metals, a junior explorer active in nickel, copper, platinum and palladium mineralization in Nunavut and uranium in the Hornby Bay Basin.
News that the deal was off sent Goldbard shares up 80% or 8¢ apiece to 18¢ per share in mid-day trading in Toronto. Adriana’s shares remained unchanged at 32¢ per share.
Under the proposed transaction, Goldbard was to have acquired all of the outstanding shares of MIE. Shareholders in MIE were to receive an aggregate of 8 million shares of Goldbard at a price of 75¢ per Goldbard share, valued at C$6 million.
Now Adriana says it will continue to review options to find a strategic partner for MIE Metals’ advanced nickel-copper-PGE and uranium projects in northern Canada.
In the meantime, Adriana says it will focus on advancing the development of its iron ore projects in Quebec, its vanadium-iron project in Finland and its iron ore port facility in Brazil,.
Two years ago the company spotted a need for an independent iron ore port facility to capitalize on the restricted market of the many small and medium size iron producers in Brazil’s state of Minas Gerais.
Adriana hopes to build a shallow-water transshipment facility capable of handling up to 18 million tonnes of iron ore per year. In August 2007, it purchased three contiguous parcels of shoreline covering 857,575 sq. metres of land for the facility.
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