Canada Fluorspar and Arkema Participate in $83.5 Million Investment to Re-Activate Candadian Project
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Canada Fluorspar
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Canada Fluorspar Inc. (CFI) and Arkema will participate in a joint agreement to finance the re-activation of CFI’s fluorspar project located in St. Lawrence, Newfoundland, Canada.
CFI and Arkema have entered into a definitive agreement pursuant to which Arkema will initially invest CDN$15.5 million (US $15,748,256) to purchase common shares and subscription receipts of CFI. The subscription price per common share and per subscription receipt is CDN$0.75 (US $.76). Upon completion of this equity financing and the subsequent funding of a new limited partnership, Arkema’s total investment in CFI will amount to CDN$83.5 million (US $84,868,041).
Lindsay Gorrill, CEO of CFI, will become the CEO of the general partner of the partnership and CFI will provide services to the partnership under a management services agreement. The partnership will be governed by the board of directors of its general partner, which will include two nominees from each of CFI and Arkema and an additional independent director who will be appointed with the agreement of both CFI and Arkema.
Arkema will have the right to nominate two members of the CFI board of directors and right to nominate one of its board members as a member of the compensation, nomination & governance and audit committees.
“The transaction with Arkema culminates an extensive search for a partner in the St. Lawrence project that has been underway for the past three years,” said Lindsay Gorrill, president and CEO of CFI. “It provides our shareholders with recognition of value and sources the immediate cash needed to promptly commence development of the operations at St. Lawrence and sets out the terms for future funding. We expect that the re-activation of the Fluorspar mines at St Lawrence will generate over 150 direct full- time jobs on the Burin Peninsula.”
“We welcome the involvement of Arkema in CFI and the St. Lawrence project,” said Richard Carl, executive chairman of CFI. “Arkema’s global reach in the fluoropolymer and fluorocarbon industry, combined with its North American presence and shared vision for our project provide us with a stable partner that will bring back to life a project that will be of benefit to all our stakeholders including the people of St. Lawrence and the Burin Peninsula. Our project would not have reached its current phase of development without the ongoing support of the Government of Newfoundland and Labrador, and its financial assistance to fund the Company’s deep water wharf, and the Town Council and the people of St. Lawrence.”
About Arkema
Arkema is a global chemical company and France’s leading chemicals producer. Deploying a responsible, innovation-based approach, Arkema produces state-of-the-art specialty chemicals that provide customers with practical solutions to such challenges as climate change, access to drinking water, the future of energy, fossil fuel preservation and the need for lighter materials. With operations in more than 40 countries, 14,000 employees and 8 research centers, Arkema generates annual revenue of €5.9 billion (US $8,337,475,860).
To stop by Arkema’s website, CLICK HERE
About Canada Fluorspar
Canada Fluorspar is a specialty mineral resource company engaged in the development and production of fluorspar deposits at its property located in St. Lawrence, Newfoundland, Canada, and is moving forward to reactivate existing underground fluorspar mines, expand an existing mill, construct a new, environmentally-sound tailings management facility and build a new deep-water marine terminal in the outer St. Lawrence Harbour for the export of fluorspar concentrate product.
To stop by Canada Fluorspar’s website, CLICK HERE
