JOHANNESBURG (miningweekly.com) – ASX- and Aim-listed Dwyka Resources has made a £1,8-million bid for UK-based explorer Minerva Resources, it said on Tuesday.

Dwyka, which announced on June 1 that it was in talks with Minerva, said that it was offering one new share for every five Minerva shares. Based on a closing price of 5,88p a share for Dwyka, on June 22, the offer valued each Minerva share at around 1,2p.

It stated that Minerva shares at about 1,2p a share represented a premium of about 71,4% to the closing price of 0,7p a share on January 29, which was the last business day prior to the company’s suspension from trading on the Aim.

The full acceptance of the offer would result in the issue of up to 30,8-million new Dwyka shares, representing about 13,9% of the enlarged capital being held by Minerva shareholders.

Minerva chairperson Andrew Daley said that independent directors considered the offer to be “fair and reasonable”, and that they had recommended that Minerva shareholders accept the offer.

“Given the present difficulties for small exploration companies being able to raise finance, the board of Minerva are very pleased to have agreed a deal with Dwyka,” said Daley.

“Dwyka’s strong financial position and management expertise in the junior mining sector are a good complementary fit with Minerva’s assets. Existing Minerva shareholders will be given the opportunity to share in the potential of the Minerva projects as well as the broader Dwyka portfolio and the deal will put the company on a much firmer footing than of late.”

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