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(Alliance News) - Shares in Uru Metals Ltd rose 15% on Tuesday after it announced the completion of its sale of Zebediela Nickel Co Ltd to Blue Rhino Capital Corp.
The takeover of Zebediela Nickel, a wholly-owned subsidiary of Uru that is developing the Zebediela project in South Africa, was first announced last week and will see Blue Rhino change its name to ZEB Nickel Corp.
Shares in Uru were trading up 15% at 486.50 pence each on Tuesday afternoon in London. The stock has more than doubled from 261.50p at the end of 2020.
Uru now holds 41.0 million shares in ZEB Nickel, subject to escrow provisions. That represents a 75% stake in the Toronto-listed company, which conducted a share consolidation and completed a CAD2.8 million, about GBP1.6 million, equity raise as part of the deal.
"The transaction with Zeb Nickel provides much needed capital for the continued development of the Zebediela project. Uru remains committed to the Zebediela project, which the board believes can become a globally significant nickel deposit," commented Uru Chief Executive John Zorbas.
By Will Paige; willpaige@alliancenews.com
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