MHM, AMC sign merger term sheet to create new bauxite company

<p>Alliance Mining Commodities (AMC), a Bermudan minerals development company has signed a merger term sheet with MHM Metals of Melbourne, Australia, reported industry sources aware of the matter. The proposed merger will be implemented by way of a scrip exchange, at an indicative merger ratio of 15% MHM and 8% AMC. The entire process is subject to MHM maintaining net assets of no less than A$7-million at the time of signing the transaction documentation.<br /><br />AMC, which owns a 90 per cent interest in the Koumbia bauxite project, in Guinea, is known for its capabilities in developing bulk commodity and infrastructure projects.<br /><br />The proposed merger will provide MHM with the opportunity to leverage upon the mineral company's world-class project thereby helping it to create a new, substantial ASX-listed direct shipping bauxite producing company in the short to medium term, said MHM spokesperson at a shareholders' meeting on Tuesday, November 15. <br /><br /><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/Merger%20deal.jpg" alt="News" width="517" height="226" /><br />AMC has invested some A$40 million till date on exploring the Koumbia bauxite project. Investments were also directed towards completing resource delineation, a definitive feasibility study for a ten-million-tonne-a-year operation, and completing environmental- and social-impact studies.<br /><br />MHM has also agreed to provide AMC with a loan facility of up to A$1.5 million to enable the company to progress with agreed development activities on the Koumbia project.<br /><br />{googleAdsense}<br /><br />As per industry sources, the proposed merger is subject to a number of conditions, including a due diligence, regulatory and shareholder approval, and MHM completing a capital raise to enable the company to comply with the ASX listing rules.&nbsp;</p>