Merger to be implemented via a Scheme of Arrangement, subject to Cape Alumina shareholder and court approval • MetroCoal to offer approximately 1.12 MetroCoal shares for every 1 Cape Alumina share • MetroCoal to provide Cape Alumina with a $3 million convertible note to supplement Cape Alumina working capital to accelerate work on the Pisolite Hills project (with $1 million available on execution of the MIA and a further $2 million available subject to the approval of Cape Alumina shareholders) • Major Cape Alumina shareholder Resource Capital Funds will convert its $5 million convertible note into Cape Alumina shares at 12 cents per share prior to the merger proceeding • Cape Alumina Board unanimously recommends the proposal and intends to vote all shares they control in favour • Merger is anticipated to be effective by late December 2013, pending necessary approvals.
MTE Price at posting:
3.9¢ Sentiment: Buy Disclosure: Held