Alloycorp Mining to be taken private by majority owner RCF

Alloycorp Mining Inc (TSX-V: AVT) earlier this month agreed to be taken private by U.S. private equity firm Resource Capital Funds (RCF), the company's largest creditor and shareholder. The initiative was triggered by Alloycorp's debt burden, of which RCF has provided US$126 million since 2008. RCF recently converted debt secured by Alloycorp's assets to equity, giving the investor about 90 percent of outstanding common shares. It is offering other shareholders $0.05 per share, which will be subject to a vote on August 8th. Toronto-based Alloycorp is the owner of the Kitsault molybdenum mining project, located north of Prince Rupert, British Columbia.

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