- New Century Resources (NCZ) has elected to walk away from a deal to acquire a majority interest in Goro Nickel and Cobalt Mine
- NCZ had been planning to acquire 95 per cent of the issued shares in Vale Nouvelle-Calédonie S.A.S. (VNC) — the owner of Goro
- But, New Century said it has been unable to agree upon a suitable funding package and equity structure with Vale
- As a result, the company has let its exclusive right to purchase VNC lapse without submitting a binding offer
- Shares in New Century are trading down a slight 3.33 per cent, for 14.5 cents
Mineral exploration company New Century Resources (NCZ) has elected to walk away from a deal to acquire a majority interest in Goro Nickel and Cobalt Mine.
The Goro Mine, which is located in New Caledonia, is owned and operated by Vale Nouvelle-Calédonie S.A.S. (VNC).
New Century announced in May it had the exclusive option to acquire 95 per cent of VCN’s shares and buy a ruling stake in the company and its mine.
NCZ then wrapped up its due diligence in the project and had successfully secured financing for the acquisition before it hit a snag and decided not to submit a binding offer.
Specifically, New Century said it had been unable to agree upon a suitable funding package and equity structure with Vale.
In a statement to shareholders today, NCZ said: “negotiations with various stakeholders have not been able to generate a funding package and equity structure for VNC which adequately accommodates a suitable risk/reward scenario for shareholders of New Century Resources.”
Following the breakdown of negotiations, the exclusivity period for New Century to acquire VCN has lapsed, meaning the deal is off.
NCZ has thanked its shareholders for their support during the acquisition process and wished the team at VNC luck going forward.
Meanwhile, shares in New Century are trading red following news the acquisition is off. Currently, shares are down 3.33 per cent and trading for 14.5 cents each at 11.27 am AEST.