Nyrstar Targets Mexico Mine

Belgian metals company Nyrstar will make an all-cash offer to acquire Farallon, owner of the Campo Morado mine in Mexico. Nyrstar says it will offer EUR296m for the outstanding shares of Farallon, which trades on the Toronto stock exchange. The Morado mine comprises approximately 12,000 hectares in 6 mining concessions, located 160km southwest of Mexico City and produces high grade zinc, copper, lead, gold and silver. The offer will be financed from existing credit facilities. Farallon has agreed to pay Nyrstar a break-up fee of approximately CAD12m in certain circumstances.