TORONTO - Rio Verde Minerals Development Corp. (TSX:RVD) has signed a friendly deal to be bought by Brazilian mining company B&A Mineracao S.A. for about $48.6 million.
Under the agreement announced Thursday, B&A will pay 40 cents per share in cash for Rio Verde, which is developing fertilizer projects in Brazil.
Shares in the company closed down 1.5 cents at 35.5 cents on the Toronto Stock Exchange.
Executives and directors of Rio Verde as well as shareholders representing approximately 25 per cent of the company's outstanding shares have agreed to support the deal.
B&A also owns 29.8 per cent of the company.
The agreement requires approval by a majority of votes cast by shareholders as well as a majority of votes cast by shareholders, excluding B&A.
B&A owns iron ore, potash, phosphate, and copper assets in Brazil, Latin America and Africa.
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