URU Metals shares are one of the biggest movers in London on Tuesday after the company completed the sale of the Zebediela Nickel Company to Blue Rhino Capital.
Blue Rhino has now changed its name to ZEB Nickel Corp and will trade under the ticker symbol ZBNI.
The sale was initially announced at the end of July.
John Zorbas, CEO of URU Metals, said he was pleased to complete the transaction: “The transaction with Zeb Nickel provides much needed capital for the continued development of the Zebediela Project. URU remains committed to the Zebediela Project which the Board believes can become a globally significant nickel deposit.
“This transaction delivers a lower cost of capital and resultant dilution to URU shareholders than a direct placing by URU to raise funds given the low valuation of the Company on AIM. URU's technical team lead by Richard Montjoie will continue to lead the efforts on the advancement of the Zebediela Project and following the transaction URU is the majority shareholder of Zeb Nickel.
“The Company is a long-term and supportive shareholder of Zeb Nickel and the Board remains fully focused on developing the project and realizing its value for shareholders of both URU and Zeb Nickel. We wish the Zeb Nickel team good fortune on their listing, and believe the future is bright for both companies.”
URU's share price is up 21.45% so far on Tuesday, priced at 512p.
URU Metals shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are URU shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies
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Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.