France's Eramet to acquire Weda Bay for C$270 million

France-based Eramet S.A. and Canadian firm Weda Bay Minerals Inc have entered into a support agreement under which the former will offer C$2.70 per share in cash or about C$270 million in total for all of the issued and outstanding common shares of the latter.

?The Eramet offer is fully financed and comes as a result of a process run by the Board of Directors of Weda Bay to explore strategic relationships with industry leaders in order to develop the Halmahera Project in Indonesia and enhance shareholder value,? Weda Bay said in statement on Tuesday.

Weda Bay is developing the Halmahera Nickel Cobalt Project, which is one of the world's largest undeveloped nickel projects. The project resources are 155 million tons grading 1.45% Ni and 0.09% Co of measured and indicated resources plus 123 million tonnes grading 1.53% Ni and 0.08% Co of inferred resource. Resource estimates are at a cutoff grade of 1.0% Ni.

Weda Bay has completed an independent Pre Feasibility Study which concludes that the Halmahera project is viable.

Eramet is an integrated mining and metallurgy group that produces non-ferrous metals and their chemical derivatives, high-performance special steels, nickel alloys and superalloys and high-performance parts for industry. (Robert)