Headquartered in Sandy, Utah, Nevada Chemicals Inc. through their 50 percent stake in subsidiary Cyanco is a producer of strategic chemicals for the Gold Mining industry in the United States. They engage in their work with Cyanco who is a Winnemucca, Nevada based chemical producer of liquid sodium cyanide to gold mining operations in Nevada. They have the capacity to produce in excess of 85 million pounds of liquid sodium cyanide annually.
Nevada Chemicals produces and delivers their liquid sodium cyanide to Western U.S. based precious metal mining enterprises. They have partnering relationships with mines to provide products delivered with an emphasis on safety for the public, the environment, and their employees. Nevada Chemicals’ corporate mission is to grow into the cyanide provider of choice via their relationship with Cyanco.
The process that gold mining companies use to extract gold involves the use of cyanide. Low-grade ore, broken into small chunks, receives placing on carefully lined pads where a dilute cyanide solution distributes over the surface of the heap. The solution percolates through the heap and the cyanide dissolves the gold. Operators then collect this solution containing dissolved gold.
Nevada Chemicals Inc. conceived, constructed, developed, and operated Cyanco. Cyanco is a joint venture operation with Degussa Corporation. Nevada Chemicals, with Degussa Corporation, has expanded the business of Cyanco by purchasing the sodium cyanide distribution business of FMC Corporation. Nevada, through Cyanco has developed and marketed technology used and licensed globally in the field of explosives and cyanide processing.
They also pioneered bulk explosive systems throughout the world through Mining Services International, having successfully operated in more than 12 countries. Nevada Chemicals began as Mining Services International in 1979 as a provider of chemical products and services to the mining industry. Mining Services International entered the industry providing bulk-mining explosives. Today, Nevada Chemicals Inc. offers products for use in leaching precious metals in mining operations.
On July 31, Nevada Chemicals Inc. announced their earnings for the second quarter ended June 30, 2008. They had net income of $1,377,000 or $0.20 per share compared to $976,000 or $0.14 per share in the second quarter of 2007. For the six months ended June 30, 2008, the Company had net income of $2,326,000 or $0.33 per share, compared to net income of $1,753,000, or $0.25 per share, for the six months ended June 30, 2007.
On September 5, the Company announced that they signed a definitive agreement to be acquired by Calypso Acquisition Corp., an affiliate of Cyanco Holding Corp. and OCM Principal Opportunities Fund IV, L.P., a fund managed by Oaktree Capital Management, L.P., for $13.37 per share of common stock. The transaction is a cash tender offer for 100 percent of Nevada Chemicals’ outstanding common stock. The offer price represents approximately a 36 percent premium over the closing stock market price of Nevada Chemicals’ common stock on September 5, 2008.
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