Australian base metals companies Vulcan Resources Ltd
(ASX:VCN) and Universal Resources Ltd
(ASX:URL) have agreed to merge.
Under the terms of the scheme of arrangement, all shares in Vulcan will be transferred to Universal and Vulcan shareholders will receive 6.58 Universal shares for each share in Vulcan.
In a joint statement to the market the two companies say the merged group will seek to progress development and finance of two advanced development stage projects, the Kylylahti copper, cobalt and nickel project in eastern Finland and the Roseby copper project in Queensland.
In the statement the Vulcan and Universal boards believe that the combined corporate, management and technical strengths of both companies will result in increased capacity to successfully develop existing projects, and will fast-track the merged company to become a substantial copper producer.
Vulcan Resources has posted losses in the last five years. And looking back Universal Resources is also yet to post a net profit.
