Duluth Metals cancels plans for C$5 million private placement of stock

Company says takeover bid by Antofagasta planned at C$0.45 per share

By Devika Patel

Knoxville, Tenn., Nov. 3 – Duluth Metals Ltd. said it no longer plans to conduct a C$5 million private placement of stock with Industrial Alliance Securities Inc. as agent. The deal was announced Oct. 8.

The company had planned to sell common shares on a best-efforts basis.

The company also said it has entered into a binding agreement under which Antofagasta plc has agreed to acquire all of the company’s outstanding common shares through a friendly takeover bid. The takeover will be conducted at C$0.45 per share in cash, which is a 284% premium to the 20-day volume weighted average price of the stock on Oct. 31, the company said in a press release.

A conference call has been scheduled for Nov. 3 at 11 a.m. ET. Executive chairman Christopher Dundas and president and chief executive officer Kelly Osborne will be answering questions during the call (888 231-8191 or 647 427-7450).

“We are pleased to reach an agreement with our partner Antofagasta and enter into this acquisition transaction. During a difficult period for the mining industry, Duluth has been able to negotiate a significant premium to the current market share price,” Osborne said in a press release.

Duluth is a copper, nickel and platinum exploration company based in Toronto.

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