Norilsk Nickel, one of the world's largest producers of nickel, palladium, platinum and copper, said it would transfer the funds to its subsidiary Norilsk Nickel (Cyprus) Ltd. to pay for all the common stock of gold and nickel producer LionOre at a price of 27.5 Canadian dollars (US$25.32) in cash per common share.
Norilsk Nickel offered in early May to buy all of LionOre's common stock, paying 21.50 Canadian dollars (US$19.42) in cash per share. The metals giant subsequently increased its cash offer to 27.5 Canadian dollars (US$25.32) per common share of LionOre.
If all LionOre's common stock is offered for sale, Norilsk Nickel's raised proposal will total around 6.8 billion Canadian dollars (about $6.4 billion) in cash.
The Russian metals giant earlier said it is seeking to acquire LionOre to boost metals output, expand the geography of its operations, and implement "exciting projects."
LionOre is a global nickel and gold producer with operations in Australia, Botswana and South Africa. In 2006, LionOre produced 34,094 metric tons of payable nickel and 155.203 ounces of gold.
