Mining company CBH (ASX:CBH) has entered into a fundraising agreement with major shareholder Toho Zinc, snubbing a takeover offer from Belgium’s Nyrstar NV.
The board has decided to cease negotiations with Nyrstar NV, after determining the Toho offer to be superior, CBH said.
Under the terms of the CBH-Toho deal, CBH will sell a 50% stake in the Rasp project in Broken Hill for $57.5 million, and will raise a further $10 million by placing 50 million CBH shares to Toho.
Toho will then purchase all the lead and zinc concentrates to be mined from the site.
The deal will lift Toho’s stake in CBH from the current 23% to between 29.6% and 31.8%.