Lornex reorganization

The reorganization of Lornex Mining Corp. (VSE) has been completed, partners Rio Algom (TSE) and Teck Corp. (TSE) say. Shareholders of Lornex approved the amalgamation of the company with a wholly-owned subsidiary of Rio Algom.

Teck exchanged its 25.4% interest in Lornex for an equivalent interest in the assets and liabilities of Lornex. Effective Dec 30, the amalgamation resulted in remaining Lornex shareholders other than Rio Algom, receiving three $25 8.5% preference shares of Rio for each Lornex share held. Following the deal, the winding up of Lornex was approved and its remaining assets and liabilities transferred to Rio Algom.