CVRD announces plans to acquire Canico

CVRD announces plans to acquire Canico

Brazilian metals and mining company Companhia Vale do Rio Doce (CVRD) announced it intends to make an offer to purchase all outstanding common shares of Canico Resource Corp. for CA$17.50 (Canadian) in cash per Canico common share. The offer will represent a premium of 29 percent over the volume weighted-average trading price of Canico's common shares on the Toronto Stock Exchange for the 30 trading days immediately preceding the date of this announcement of CA$13.56. Upon completion of the offer, CVRD would own at least 50 percent plus one of Canico's common shares, on a fully-diluted basis. The offer will be conditional upon the receipt of all necessary regulatory approvals, the absence of litigation, no material adverse change at Canico, and certain other conditions. CVRD is the largest metals and mining company in the Americas, as well as one of the largest metals and mining companies globally, with a market capitalization of approximately US$40 billion. Canadian-based junior resource company Canico is focused on the development of the Onca-Puma nickel laterite project located in the state of Para, Brazil.