[miningmx.com] — URANIUM ONE said on Thursday the takeover of Mantra Resources by ARMZ was in the balance following recent events at the Fukushima power plant in Japan.
ARMZ – Uranium One’s biggest shareholder – was in the process of acquiring Mantra in a cash deal worth about A$1.2bn. Uranium One would’ve become the operator of the Mkuju River project as soon as the ARMZ deal had closed.
Once that had happened, Uranium One had an option to purchase Mantra from ARMZ.
“ARMZ believes that the recent serious events at the nuclear power plant in Fukushima, Japan are likely to have a material adverse effect on the business, results of operations, assets or liabilities, financial position or prospects of Mantra,’ read a company statement.
“As such, ARMZ considers that the condition precedent.between ARMZ and Mantra relating to a material adverse change is not capable of being satisfied.
“ARMZ has indicated to Mantra that it intends to continue discussions with Mantra in an effort to explore how the transaction between the two companies may proceed by way of an alternative approach.”
