Shareholders of Skye Resources Inc. (TSX:SKR) have overwhelmingly approved the proposed merger of the Vancouver company with Toronto's HudBay Minerals Inc. in an all-share deal worth approximately $460.3 million.
The deal will give HudBay the Fenix Nickel Project in Guatemala. Skye's main development project has 41.4 million tonnes of reserves, which has been delayed due to the challenges Skye has had in obtaining financing. HudBay, on the other hand, has $758 million in cash.
Skye shareholders will receive 0.61 HudBay share for each of their Sky common shares. That represents a 35% premium over Sky's 20-day volume weighted average trading price.
HudBay shares closed at $14.79 on June 20.
The deal is expected to close near the end of August, following a court hearing August 22.
Skye's share price range during the past week: between $6.32 and $6.47; 52-week high: $12.73; 52-week low: $3.85.