Despite the temporarily halted trading of Farallon Mining Ltd. (TSE:FAN), (PINK:FRLIF) stock by the Investment Industry Regulatory Organization of Canada (IIROC), there was no power able to stop the share price forcing up towards the next higher range after trading was resumed yesterday.
FAN stock soared 20% on more than 77.6 million shares traded. The shares of Farallon Mining Ltd. made a huge price gap, confirming investor willingness to reevaluate the fair price of FAN stock.
The new 52-week high at $0.79 per share and the exceeding thirteen times the average for the company trading volume were in unison with the emerging recent developments of the company.
That explosion resulted not from the reported by FAN financial and operating results for the three months ended September 30, 2010, but more likely from the news about Nyrstar NV’s friendly take-over bid.
On Monday, Farallon Mining Ltd. announced its Support Agreement with Nyrstar NV, according to which Nyrstar NV has agreed to make an all-cash offer to acquire all of the issued and outstanding shares of the company. According to the offer, Farallon Mining Ltd. was valued at approximately CAD$405 million on a fully diluted basis.[BANNER]
Nyrstar NV is a global multi-metals company, producing significant quantities of essential metals like zinc, silver, gold and copper. The company is a Belgian public company and is listed on the Euronext Brussels Stock Exchange. Through the acquisition Nyrstar NV expects to increase its capacity for zinc production.
In addition, as FAN’s G9 Mine is expected to be in the lowest quartile of zinc producers on a global scale in terms of operating costs, thanks to the acquisition Nyrstar NV may reduce its group mining cash costs and ensure long-term sustainability and profitability of its business.
