Tyler Resources has signed a definitive support agreement with Jinchuan Group, China’s largest producer of nickel, cobalt and PGMs and a major producer of copper, pursuant to which Jinchuan will make an offer to acquire all of the issued and outstanding common shares on a fully diluted basis of Tyler for C$1.60 per Share in cash. The offer values Tyler at approximately C$214 million on a fully diluted basis.
The offer represents a 116% premium to Tyler’s closing price on October 18, 2007, the last trading day prior to the announcement of the unsolicited offer by Mercator Minerals, and represents a 60% premium to Tyler’s most recent closing price on January 4, 2008. In addition, the offer represents a 54% premium to Mercator’s November 9, 2007 unsolicited offer based on Mercator’s closing price on January 4, 2008.
Alan Craven, Chairman of the Tyler Board and the Special Committee: “In response to Mercator’s hostile bid, we began an active and thorough process to identify a range of value enhancing alternatives for the company. Over the past several weeks, we received serious interest from a number of parties. In the end, Jinchuan came forward with the best offer. The offer has the unanimous support of the Tyler Board.”
Li Yong-jun, Chairman and President of Jinchuan: “Tyler’s management team has developed Bahuerachi as one of Mexico’s most notable resource projects. Jinchuan looks forward to building on the efforts expended thus far to aggressively progress Bahuerachi through development and into production.”
Jinchuan is a large integrated non-ferrous metallurgical and chemical engineering company engaged in mining, concentrating, metallurgy and chemical engineering. It produces nickel, copper, cobalt, rare and precious metals and also some chemical products. Jinchuan is the largest producer of cobalt, nickel and platinum group metals in China. Jinchuan is also the largest copper producer in northern China and has an annual production capacity of 130,000 t of nickel, 400,000 t of copper, 8,000 t of cobalt and 5,000 kg of PGMs.
Tyler Resources’ primary project is the Bahuerachi property, which hosts Mexico’s fourth largest mineralised porphyry deposit. As part of its ongoing drill program, the Company has now drilled in excess of 52,000 m of combined diamond and reverse circulation drilling since 2004, making it one of the most active Canadian junior exploration companies operating in Mexico.