LONDON, UK: Blue Rhino Capital Corp has received conditional acceptance from the TSX Venture Exchange for its proposed qualifying transaction, being the acquisition of the Zebediela Nickel Company (ZEB), a wholly owned subsidiary of URU Metals Limited.
Pursuant to the Transaction, Blue Rhino will consolidate its share capital on a 2.3-for-1 basis, following which it will issue 41 million post-consolidation common shares to URU Metals, in consideration for all of the outstanding share capital of ZEB.
Blue Rhino will also assume all ongoing liabilities and obligations of ZEB, which will include a 2.5% royalty on all revenue generated from the Zebediela Nickel Project, a mining right application located in the Limpopo Province in the Republic of South Africa, near the platinum mining town of Mokopane.
One percent of the Royalty can be purchased for a one-time cash payment of US$2,000,000.
Following completion of the Transaction, it is anticipated that Blue Rhino will change its name to “ZEB Nickel Corp.” and it is the intention of Blue Rhino will continue to carry on the business of ZEB.
The completion of the Transaction is subject to a number of conditions, including, but not limited to, receipt of all required regulatory approvals, including final TSX-V acceptance and satisfaction of other customary closing conditions.
Assuming all conditions are satisfied, closing of the Transaction is expected to occur on or about 30 July 2021. The trading symbol of Blue Rhino / ZEB Nickel Corp will be “ZBNI”.
In connection with closing of the Transaction, and due to a high level of interest, Blue Rhino has decided to increase the size of its previously announced non-brokered private placement (the “Concurrent Financing”).
The Concurrent Financing will now be for up to 11,200,000 subscription receipts (each, a “Receipt”) at a price of $0.25 per Receipt for aggregate gross proceeds of C$2,800,000. All other terms will remain as previously announced by the Company in its news release dated 3 March 2021.
Mr. Richard Montjoie, a senior employee of URU, will join the board of Blue Rhino / ZEB Nickel Corp.