VANCOUVER — Minco Silver (MSV-T, MISVF-O) has cancelled its plans to take over Sterling Mining (SMQ-T, SRLM-O).
Six weeks after announcing plans for the friendly takeover, which The Northern Miner covered in the special on China and Mongolia accompanying this issue, Minco Silver backed out of the deal. The company said only that it “decided not to proceed” with the acquisition after completing a detailed due diligence review.
Sterling said in a news release that the two companies “agreed to not proceed with the business combination.” Sterling indicated that it would continue the strategic review process it announced in June, when the company said it was reviewing its strategies in order to determine core and non-core assets, for possible disposition or repositioning, as well as investigating “possible financings and/or agreements with other parties.”
At presstime, news of the merger cancellation had pushed Sterling’s share price down 16 to 37 in mid-day trading. Minco had fallen 4 to $1.66.
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