FNX Exercises Right to Purchase Dynatec's Mining Services Business
September 28, 2007 at 09:03 AM EDT
FNX Mining Company Inc. ("FNX" or the "Company") (TSX: FNX) announced today that it has exercised its right to purchase from Sherritt International Corporation (TSX: S) ("Sherritt") the Dynatec Mining Services Business for $53 million, including working capital. Concurrent with the exercise of the right, FNX entered into a definitive agreement with Sherritt to acquire the Dynatec Mining Services Business comprised of the Canadian Mining Services Division and Dynatec Mining Corporation, which provides mining services in the United States. The agreement provides that the acquisition price is subject to adjustment based upon the working capital of Mining Services Business on closing.
John Lill, President and Chief Executive Officer of FNX noted that, "we are very pleased to have exercised our right to acquire the Mining Services Business and plan to not only maintain the business as one of North America's premier mining contractors, but also pursue new contracting opportunities." Mr. Lill added, "This acquisition also provides FNX with a pool of highly skilled and experienced supervisory, mining and technical employees to support FNX's ambitious growth plans at our Sudbury operations and also adds the capability to become joint venture partners/mining operators in select mining development projects."
The acquisition is expected to close in late-October, following satisfaction of customary closing conditions. Sherritt originally acquired Dynatec's Mining Services Business in connection with its acquisition of Dynatec Corporation completed on June 14, 2007.
FORWARD LOOKING STATEMENT
This news release contains certain forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties beyond the Company's ability to control or predict which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. In this news release, terms, conditions and the ultimate closing of the purchase and future plans for the Mining Services Business are examples of forward-looking statements. There is no guarantee FNX will be able to complete all aspects of the purchase. Accordingly, readers should not place undue reliance on forward-looking statements.