Under the proposed transaction, Redaurum is planning to acquire 750,000 shares of Sabina in exchange for 1.87 million Redaurum or 1.5 shares of Redaurum for one Sabina share.
Redaurum currently holds 450,000 shares of Sabina and will hold 1.2 million shares representing a 19.9% interest if the transaction gains shareholder and regulatory approval.
Redaurum President Bill Cummins says he is also planning to acquire a 9.1% stake (or 1.2 million shares) in Dumont Nickel by issuing 2.1 million shares of Redaurum. The proposed transaction would involve a seven Redaurum for four Dumont share exchange deal.
According to Cummins, the Sabina and Dumont shares are being acquired from individual British and European shareholders who have helped to organize the proposed transaction.
Dumont’s assets include a 56- claim nickel property near Amos, Que., which hosts a large tonnage, low grade nickel deposit with drill- indicated reserves of 400 million tons grading 0.328% nickel.
The existence of the Launay Twp. deposit has been known for some time but metal prices and an appropriate recovery method have never combined to make it economic, said Cummins.
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