Dundee Prepared to Act Against Formation Refinery Sale

Dundee Corp. (TSX:DC.A) announced that it is prepared to take legal action to block Formation Metals Inc.’s (TSX:FCO) planned US$9-million sale of its Idaho-based Sunshine precious metals refinery on the basis that it is “improvident.” Cobalt-focused Formation plans to sell the refinery to Waterton Global Resource Management Inc., a company that invests in producing and late-stage development assets.

As quoted in the press release:

Dundee is of the opinion that the proposed sale of the Refinery and the sales price are improvident and not in the best interest of Formation and its shareholders. In addition, Dundee is of the opinion that the sale of the Refinery requires the approval of the Formation shareholders, being a sale of substantially all of the assets and undertaking of Formation when measured on either a quantitative or a qualitative basis. Accordingly, Dundee proposes to commence legal proceedings to enjoin the sale of the Refinery unless the sale receives the requisite shareholder approval.

Click here to read the full Dundee Corp. (TSX:DC.A) press release.