Salt Lake-based Utah Clay Technology Inc. said Tuesday that it has abandoned its proposed merger with TS Electronics Corp. because it failed to obtain the release of some of its debt prior to the proposed closing of the merger.
Utah Clay said in early July it would merge with the Delaware corporation. Had the deal closed, TS Electronics' shareholders would have become the majority shareholders of Utah Clay and the company's assets relating to its kaolin business would have been sold to Utah Clay's management, who would have considered making the business a private concern.
Utah Clay said in July that it has mining rights in parts of Utah believed to contain commercial deposits of kaolin, a mineral with certain industrial applications, but has been unable to mine the properties due to lack of capital.