Olive Announces Expected Material Increase to Its Portfolio Value and Liquidity - Hudbay Minerals to Acquire Rockcliff Metals
Toronto, Ontario--(Newsfile Corp. - June 19, 2023) - Olive Resource Capital Inc. (TSXV: OC) ("Olive" or the "Company") is pleased to announce that Rockcliff Metals Corporation (CSE: RCLF) ("Rockcliff") and Hudbay Minerals Inc. (TSX: HBM) (NYSE: HBM) ("Hudbay"), have entered into a definitive agreement (the "Arrangement Agreement") pursuant to which Hudbay will acquire 100% of the issued and outstanding common shares of Rockcliff that it does not already own (the "Arrangement").
Under the Arrangement Rockcliff shareholders will receive 0.006776 of a Hudbay common share for each Rockcliff common share held, representing an attractive premium to Rockcliff's recent trading price. Olive and its subsidiaries currently hold 82,925,238 shares of Rockcliff. Based on closing prices as of June 19, 2023, the shares of Rockcliff held by Olive have an implied value of approximately $3,899,595.
Based on Olive's May 31, 2023, unaudited Net Asset Value ("NAV") per share of $6,616,370, the consideration for the Rockcliff shares implies an approximate 21% or C$1.4 million increase in NAV from that date. Additionally, on May 31, 2023, Rockcliff represented approximately 37.6% of Olive's NAV. Considering Hudbay's significantly higher trading liquidity, the liquidity of Olive's portfolio is anticipated to materially improve.
Derek Macpherson, Executive Chairman stated: "When current management took over Olive (then Norvista) we identified that Rockcliff's assets had significant value, but that Rockcliff's capital structure was an issue. When I joined the board of Rockcliff, the board formalized a strategic review process which culminated in this transaction which we view as beneficial for Rockcliff and Olive shareholders."
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