By Dorothy Kosich, Mineweb.com
Quadra Mining (TSX: QUA) and FNX Mining (TSX: FNX) said shareholders for both companies have approved the friendly US$1.5 billion all-stock merger.
The deal was approved by 96.8% of FNX shareholders Wednesday and by 97.2% of Quadra shareholders. The merger gives Quadra shareholders 52% of the company with FNX shareholders holding 48%.
The new company will have the Robinson Copper mine in Nevada, the Carlota copper mine in Arizona, the Franke copper mine in Chile, and the McGreedy West, Levack and Podolsky mines in Sudbury, Ontario, plus the Sierra Gordita project in Chile and the Malmbjerg molybdenum project in Greenland.
Quadra FNX Mining is expected to have 2011 revenues of US$1.5 billion with 2011 production of 300 million pounds of copper and 150,000 gold ounces with by-product production of nickel, platinum and palladium.
The new company is expected to get 83% of its revenue from copper, 10% from gold, 6% from nickel and 1% from PGMs.
A rival bid for the companies is considered unlikely.
Paul Blythe, Quadra's CEO, will serve as CEO of the new company. He said the merger creates "a leading intermediate copper producer with financial strength, a solid asset base, and an experienced and entrepreneurial management team."
The combined company will have five directors each from both companies of which one seat will be filled by a representative of State Grid International Development Ltd., Quadra's Chinese joint venture partner for Sierra Gordita.