Korea Zinc Co., Ltd. entered into a sale and purchase agreement to acquire remaining 8.7% stake in Zinc Oxide Corporation from Zincox Resources plc for $8 million.
January 12, 2017
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Korea Zinc Co., Ltd. (KOSE:A010130) entered into a sale and purchase agreement to acquire remaining 8.7% stake in Zinc Oxide Corporation from Zincox Resources plc (AIM:ZOX) for $8 million on January 11, 2017. Korea Zinc will acquire 7.5 million shares of Zinc Oxide Corporation. Under the terms of the agreement, the consideration will be settled in two tranches of which $7 million will be paid within three weeks and the balance once Korea Zinc Co., Ltd. has completed various procedural requirements in Korea. In the event that the second tranche is delayed by nine months, interest will start to be paid at five per cent per annum on the amount outstanding. It is anticipated that the second tranche will be paid within six months and in the meantime the shares will be held by Korea Zinc Co., Ltd in escrow. The proceeds from the sale will be used to repay the Zincox Resources' Corporate Loan Notes, which together with accrued interest amounts to approximately $6 million and the balance will be used to finance other projects in progress. The Board of Korea Zinc passed the resolution for the transaction on January 12, 2017. On January 25, 2017, $7 million was paid and balance was to be paid by December 2017. As of September 1, 2017, the terms were amended. As per the revised terms, 90% of the outstanding consideration, being $0.82 million of the agreement will be paid before the end of September 2017. A final payment of $0.09 million will be paid on completion of formalities of the sale, expected before the end of 2017. As of September 1, 2017, Korea Zinc Co., Ltd. completed the acquisition of additional 7.7% stake. Richard Kauffer and Euan Brown of Peel Hunt LLP acted as nominated adviser and broker for Zincox Resources plc.
Korea Zinc Inc is a Korea-based company principally engaged in the manufacture and distribution of non-ferrous metal products. The Companyâs non-ferrous metal products consist of precious metal products, including gold and silver products, and zinc products, including zinc slab ingots, zinc alloy jumbo blocks, zinc anode ingots and zinc die-casting ingots. Through its subsidiaries the Company also engages in the distribution of non-ferrous metals, supply of electricity, gas and steam, provision of storage and transportation services, collection and transport of waste, and operation of other businesses. The Company distributes its products in domestic and overseas markets.
Korea Zinc Co., Ltd. entered into a sale and purchase agreement to acquire remaining 8.7% stake in Zinc Oxide Corporation from Zincox Resources plc for $8 million.