Quebec City-based Societe d’Exploration Miniere Vior (ME) and Inco (TSE) have negotiated a deal which will see Vior expand its gold property portfolio and Inco increase its interest in the junior.
The nine properties involved in the deal are all in Quebec. Four are wholly owned by Inco and five are joint venture properties, including the Douay project in the Casa Berardi region where the companies have reported encouraging drilling results.
Vior will issue 6.8 million treasury shares to Inco at market price plus a premium of 25%. The deal will boost Inco’s stake in Vior from 5% to 34.9%. The agreement will also permit Inco to subscribe for additional treasury shares of Vior and give Inco an option to purchase up to 100% of any future Vior financing (subject to any existing Vior agreements involving third parties).
The deal is subject to regulatory and Vior shareholder approval and due diligence by both companies.
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