News & Insights

Bellanhouse advises Nzuri Copper on acquisition proposal

Bellanhouse recently advised Nzuri Copper Limited (Nzuri) (ASX: NZC) on its entry into a Scheme Implementation Deed with Xuchen International Limited (Chengtun Bidder), a subsidiary of Chengtun Mining Group Co., Ltd (together, Chengtun Group).

Under the scheme of arrangement proposed by the Scheme Implementation Deed (Scheme), Nzuri shareholders will receive 37 cents cash per share. The offer values Nzuri at $109.5m and represents a substantial premium for shareholders to the recent trading price of Nzuri shares.

Nzuri is an Australian copper-cobalt exploration and development company which operates two key projects in the Democratic Republic of the Congo (DRC). The Kalongwe Copper-Cobalt deposit (Kalongwe Project) is Nzuri’s 85% owned flagship development project and the Fold and Thrust Belt JV project (FTBJV) consists of five highly prospective tenements.

Shanghai Stock Exchange-listed Chengtun Group is a leading Chinese metals, mining, trading and industrial group and a major player in the Kolwezi region of the DRC.

Nzuri’s directors unanimously recommended shareholders vote in favour of the Scheme, subject to the Independent Expert determining it is in the best interests of Nzuri shareholders and no superior proposal emerging.

Completion of the Scheme is subject to a number of conditions as further set out in Nzuri’s ASX announcement dated 27 February 2019.

Chengtun Bidder has also agreed to provide Nzuri with interim funding via a secured loan facility of up to $5m.

Nzuri’s Managing Director, Mr Mark Arneson said, “After many months of negotiations and discussions, we are pleased to have arrived at a point where we can put this cash acquisition proposal from Chengtun Bidder in front of our shareholders.

“[Chengtun Group] have a strong operational presence in the DRC and have recently invested in a new SX-EW processing facility which represents an excellent strategic fit with the Kalongwe Project.

The Board believes that this transaction provides shareholders with the opportunity to crystallise certain value for their investment.”

Bellanhouse Partners Deanna Carpenter and Shaun Hardcastle advised Nzuri with support from Associate Ashleigh Walsh, and Graduate Elizabeth Phillips.

The Scheme is expected to be implemented in mid to late July 2019.

Read the ASX Announcement.


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