This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Hondo Minerals Corporation Enters Into A Binding Letter Of Intent With Crowncorp Investments To Acquire The Company For A Purchase Price Of $88 Million Dollars

Stocks in this article: HMNC

CHLORIDE, AZ, May 2, 2013 /PRNewswire/ - Hondo Minerals Corporation (OTCBB: HMNC.OB) ("Hondo," "Hondo Minerals" or the "Company") today announces that the Company has entered into a binding Letter of Intent with Crowncorp Investments Corporation, a Texas corporation ("Crowncorp"), for the sale of 100% of the Company's assets and issued and outstanding stock for a purchase price of $88 million, which includes $13 million in working capital to be retained in the Company post-closing (the "Acquisition").

Bill Miertschin, CEO of Hondo Minerals says, "We have been working closely with Crowncorp and its associates and advisors for several months to arrive at an acceptable structure with which to facilitate this transaction. Of the total $88 million to be provided by Crowncorp, it is anticipated that the Company's shareholders will receive $75 million less the retirement of current debts and Hondo's transactional expenses. Of course, we will be constructing a substantive final agreement with extensive closing documents for required regulatory review and shareholder disclosure and subsequent approvals."

Mr. Miertschin continues to say, "We are excited that Crowncorp recognizes the value of Hondo's assets both the in-ground and our processing technology, and that Hondo and its shareholders can receive that value." 

Crowncorp intends to acquire 100% of the assets and issued and outstanding stock of the Company in exchange for approximately $88 million, which shall be payable in cash to the Company and the Company's shareholders. 

As conditions to the consummation of the Acquisition, the Company and Crowncorp intend to execute: (i) a definitive operating agreement which shall transfer management and control of Hondo's assets and operations to Crowncorp; and (ii) a tender offer pursuant to which Crowncorp shall purchase all of the Company's issued and outstanding stock from the Company's shareholders in accordance with all appropriate laws and regulations and commercially acceptable practices and procedures. 

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,810.06 +91.06 0.51%
S&P 500 2,063.50 +10.75 0.52%
NASDAQ 4,712.97 +11.1030 0.24%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs