FNX Mining Company Inc.
TSX : FNX

FNX Mining Company Inc.

April 20, 2007 09:11 ET

FNX Acquires Right to Purchase Dynatec's Mining Services Division

TORONTO, ONTARIO--(CCNMatthews - April 20, 2007) - FNX Mining Company Inc. ("FNX") (TSX:FNX) refers to the transaction ("Transaction") announced today by Dynatec Corporation (TSX:DY) ("Dynatec") and Sherritt International Corporation (TSX:S) ("Sherritt"). Concurrent with that Transaction, Dynatec and Sherritt have entered into an agreement with FNX, whereby FNX has been granted the right, subject to the closing of the Transaction, to purchase Dynatec's Mining Services Division for cash at a price to be determined based upon independent valuations. FNX intends to exercise this right immediately upon closing of the Transaction, which is expected to occur by the middle of June, subject to regulatory, shareholder and court approvals.

Terry MacGibbon, President and CEO of FNX noted that, "we are very pleased to have the opportunity to acquire Dynatec's Mining Services Division and plan to not only maintain the division as one of North America's premier mining contractors but also pursue new contracting opportunities and to aggressively grow the division."

He also stated, "this acquisition will provide FNX with a large pool of highly skilled and experienced managerial, professional, supervisory, technical, and mining employees to not only support FNX's ambitious growth plans at its Sudbury, Ontario operations, but to enable it to become a significant joint venture partner and mine/exploration operator in worthwhile mining projects in a manner similar to which Dynatec became FNX's partner in the Sudbury Joint Venture. This unique opportunity provides FNX with the talent and expertise necessary to support our ambitious growth plans in Sudbury, while simultaneously increasing the Company's share liquidity and broadening our shareholder base."

Tony Makuch, FNX's Senior Vice President and Chief Operating Officer and the former Dynatec Vice President Operations for the Mining Services Division, added, "the Mining Services Division has mining and development contracts in Canada and the USA and it is our intention to continue to provide high level service and support to Dynatec's existing clients and to aggressively expand the mine services business with the support and participation of the current Mining Services Division employees. We believe that there are outstanding opportunities to grow and expand the Mining Services Division during this period of unprecedented worldwide mining activity."

The Transaction provides for the 20.5 million FNX shares currently held by Dynatec to be broadly distributed to Dynatec shareholders. FNX currently holds approximately 7.7 million Dynatec shares, which are expected to be exchanged for a combination of Sherritt and FNX shares in connection with the Transaction. It is FNX's intention to cancel all FNX shares received from the offer and to hold the received Sherritt shares for investment purposes.

Upon closing of the Transaction, Dynatec's two current representatives on the FNX Board will resign.

BMO Capital Markets is acting as financial advisor to FNX and Cassels Brock & Blackwell LLP is acting as legal advisor to FNX.

FORWARD LOOKING STATEMENT

This news release contains certain forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties beyond the company's ability to control or predict which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. In this news release, terms, conditions and the ultimate closing of the purchase and future plans for the Mining Services Division are examples of forward-looking statements. There is no guarantee FNX will be able to complete all aspects of the purchase. Accordingly, readers should not place undue reliance on forward-looking statements.

Contact Information

  • FNX Mining Company Inc.
    Terry MacGibbon
    President and CEO
    (416) 628-5929
    (416) 360-0550 (FAX)
    or
    FNX Mining Company Inc.
    David Constable
    Vice President, Investor Relations and Corporate Affairs
    (416) 628-5929
    (416) 360-0550 (FAX)
    Email: info@fnxmining.com
    Website: www.fnxmining.com