Cerro Schemes approved by Federal Court of Australia
On 8 May 2013, Cerro Resources NL (Cerro) received Federal Court of Australia approval for a scheme of arrangement, first announced to the marked on 13 December 2012. GRT Lawyers congratulates Cerro on achieving the final step of the scheme of arrangement process. Importantly, the Cerro matter is one of only a few that has been heard by the Federal Court of Australia in Queensland. The GRT corporate team have worked hard with Cerro to deliver a highly complex transaction that achieves a fantastic outcome for all Cerro Securityholders.
The matter involves the acquisition of all Cerro Securities by Primero Mining Corp. via a scheme of arrangement between Cerro and Cerro Securityholders, a spin-out of Cerro’s non-Cerro del Gallo assets (Spinout) into Cerro’s wholly-owned subsidiary Santana Minerals NL (Santana) and a capital reduction equivalent to the Spinout. Cerro Securityholders will also receive an in-specie distribution in relation to the Spinout (Transaction). Santana is also proposing to list on the ASX.
The Transaction not only recognises the development and value of the Cerro del Gallo gold/silver project in central Mexico, it also ensures Cerro Securityholders maintain exposure to that project. In addition, the Transaction enables Cerro Securityholders to diversify their investment to include the more substantive asset and income base of Primero while at the same time allows Cerro Shareholders to retain a significant proportion of their interest in and exposure to the other exploration assets of Cerro through holding Santana Shares.
GRT Lawyers will continue to update you on the progress of the Santana listing.
You can read more about the Transaction on the Australian Financial Review here.
You can read more about the deal in the Courier Mail here.
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