https://www.miningweekly.com
Projects|Resources|Drilling
Projects|Resources|Drilling
projects|resources|drilling

Black Mountain warns Poseidon about ‘highly dilutive’ capital raising

20th August 2018

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

Font size: - +

US group Black Mountain Metals on Monday warned Poseidon Nickel that it would terminate its takeover proposal if the company pursued a “highly dilutive” capital raising.

This is in response to Poseidon’s request that the ASX halt trading in its shares to “discuss and announce a material fund raising”.

The private equity firm said that a fundraising would be a breach of a condition to its proposal to acquire the company for $0.06 a share, as announced on Friday.

Black Mountain also said that it had offered a $2-million loan to Poseidon, which should allow the nickel company to meet its short-term needs.

“As a result of this morning’s trading halt announcement by Poseidon Nickel, we intend to terminate our proposal regarding the acquisition of 100% of Poseidon Nickel’s shares at an attractive premium,” said Black Mountain CEO Rhett Bennett.

Black Mountain is the beneficial owner of the second largest shareholding in Poseidon and stated that it did not support a dilutive placement.

Poseidon on Friday described the Black Mountain proposal as informal and conditional, urging shareholders to take no action.

The Australian company has three near operational projects in Western Australia, and is currently drilling for lithium resources.

Edited by Creamer Media Reporter

Comments

Latest News

G Mining buys Reunion’s Guyana project
G Mining buys Reunion’s Guyana project
23rd April 2024 By: Mariaan Webb

Showroom

Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

VISIT SHOWROOM 
WearCheck
WearCheck

Leading condition monitoring specialists, WearCheck, help boost machinery lifespan and reduce catastrophic component failure through the scientific...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

PGMs and green hydrogen make headlines
PGMs and green hydrogen make headlines
19th April 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.136 0.174s - 90pq - 2rq
1:
1: United States
Subscribe Now
2: United States
2: