Switzerland based miner Xstrata plc's subsidiary Xstrata Canada Corporation have terminated its acquisition offer for Canada based Noranda Income Fund, which owns the CEZinc processing facility and ancillary assets in Salaberry-de-Valleyfield, Quebec, stating that the parties are unlikely to agree to terms for an acquisition.

Accordingly Xstrata cancelled the non binding letter of intent dated July 28, 2010 with respect to a potential acquisition of the Fund by Xstrata.

The potential transaction contemplated the acquisition of all of the outstanding priority units of the Fund for cash consideration of $3.40 per priority unit, which represented a premium of 33% over the July 15 closing price of the priority units on the Toronto Stock Exchange.

The CEZinc processing facility is the second largest zinc processing facility in North America and the largest zinc processing facility in eastern North America. It produces refined zinc metal and various by-products from zinc concentrates purchased from mining operations.

(Sourced from SteelOrbis)