International Enexco Ltd. (TSXV:IEC) is to be split up, with its uranium assets going to Denison Mines Corp. and its copper assets being added to a new company with projects in Nevada and Alaska.
The multi-company proposal calls for Denison (TSX:DML) to buy all of IEC’s shares but to spin off the junior company’s copper assets, which will become a key part of a newly formed CopperBank Resources Ltd.
International Enexco says the combined deals value its shares at 64 cents each, based on March 19 closing prices of the companies involved, representing a 63 per cent premium as of Wednesday.
CopperBank is being formed through a three-way deal between Full Metal Minerals (TSXV:FMM), Choice Gold and International Exexco.
International Enexco says its shareholders would own about 54 per cent of Copperbank, which will own IEC’s Contact copper project in Nevada and Full Metal’s Pyramid copper project in Alaska.
The complex series of interrelated agreements between the four companies require various approvals, including from shareholders.