LONDON (ShareCast) - AIM-listed Toledo Mining (LSE: TMC.L - news) has proposed to change its share arrangement in Berong Nickel Corporation (BNC).
The company is proposing to sell its indirect interest in Berong Nickel Corporation for $6.55m and acquire a direct interest in Berong Nickel Corporation from ENK for the same value.
Although Toledo's overall interest in the Berong Nickel Corporation will not materially change as a result of the proposed transactions, it is expected to be an important step for Toledo to have greater representation on the BNC Board through an increased direct holding.
Further, having DMCI Mining as a partner in BNC is expected to be viewed as a significant advantage for the next stage of development for BNC.
Toledo Mining Corporation further announced that, following discussions with DMCI Mining Corporation, it has exchanged contracts for the sale of a 31% shareholding in Nickeline Resources to DMCI Mining.
Victor Kolesnikov, Chief Executive Officer of Toledo Mining, said: "I am delighted that the agreements have been finalised under which the company will be receiving payment of $6,552,000 from DMCI Mining for the sale of the indirect interest in BNC and the parties have agreed that Toledo will use these proceeds to settle the $5,896,800 balance of purchase price payable to ENK for the 18.7% stake in BNC".
Toledo Mining Corporation's share price was up 0.83% to 30.25p at 08:00 on Wednesday morning.