Shaking the tree at Independent Nickel.

• Author: Louiseize, Kelly
• Position: MINING

Let the games begin. There was plenty of jockeying for position in Sudbury's mining business world.

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Vancouver based-Hunter Dickinson had entered into a strategic investment agreement with Sudbury-based Independent Nickel to acquire 40,000,000 units of Independent Nickel for gross proceeds of $14 million on a non-brokered basis.

The transaction had shaken the tree and Victory Nickel announced an unsolicited takeover bid for Independent.

Following the recommendations of a special committee, the Board of Directors advised shareholders to accept an amended offer of 1.1 share of Victory Nickel in exchange for each share of Independent Nickel. Victory has also agreed to appoint two of Independent's directors to their board.

"After careful consideration of all aspect of the increased offer our Board of Directors has concluded that accepting the Victory Nickel offer presents shareholders with the best opportunity available to maximize value," Independent Nickel president Richard Murphy stated in a release.

Victory is predominantly owned and managed by Nuinsco Resources. It has property beside Independent Nickel's Lynn Lake deposit in Northern Manitoba called the Minago Nickel Property.

Independent acquired a three per cent net smelter royalty fee on Minago when nickel prices exceed US$6/Ib. That meant Independent was to receive $74 million over a 16-year mine life.

By acquiring Independent Nickel, Victory will no longer pay the royalty fees.

"We like our property and we like royalty fees," Victory vice chairman and CEO, Rene R. Galipeau said.

Victory will likely go to market for funding for the next phase of work in Lynn Lake which is expected to have a price tag of $30 million.

Acquiring Independent Nickel has also meant acquiring their expertise, something Galipeau was keen to do.

"We like those people," Galipeau said, meaning Independent's management. "There is no...