News: Murchison Metals to merge with Mercantile

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    Murchison Metals Limited (ASX:MMX) has agreed to merge with its major shareholder Mercantile Investment Company Limited (ASX:MVT). 


     


    Under the scheme implementation agreement Murchison shares will be cancelled, other than those held by Mercantile, should Murchison shareholders back the merger plan in June.   


     


    Murchison shareholders will then be able to choose to be payed in cash, or Mercantile scrip, or a 50/50 combination of both cash and Mercantile scrip.


     


    Should all Murchison shareholders convert their shares to Mercantile scrip it will create a new merged listed investment company. Mercantile says the new entity would have a combined asset value of $51.9 million and over 4,000 shareholders.


     


    Murchison sold its stake in Crosslands Resources Limited and the Oakajee port and rail infrastructure projects for $325 million in cash in February 2012. 


     


    Following yesterday's announcement shares in Murchison jumped more than 14 per cent to $0.048 while shares in Mercantile gained 7.41 per cent to close at $0.145. 


     


    Murchison Metals reported a net loss of $140,000 in the first half of the 2014 financial year. 

 
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