https://www.miningweekly.com

Energia directors snub Cauldron offer

27th May 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

Font size: - +

PERTH (miningweekly.com) – The directors of ASX-listed uranium explorer Energia Minerals have advised shareholders to reject a takeover offer by fellow-listed Cauldron Energy after an independent expert found that the offer was neither fair, nor reasonable.

In March, Cauldron made a play for Energia, offering shareholders one of its own shares for every eight Energia shares held.

When the offer was announced, it was a 30% premium to the closing price of Energia shares on March 14, and implied a value of A$0.034 a share.

However, Energia directors said in a letter to shareholders on Monday that the independent expert valued Energia shares at between $0.09 and A$0.26 a share. Based on Cauldron’s share price on May 22, the offer implied a value of A$0.12 a share for Energia’s shares, which the directors pointed out was a 40% discount to the company’s share price on the same date.

The letter also said that its largest shareholders and the directors, which hold a combined 51.97% of the company, would not accept the Cauldron offer, which meant that the suit would not succeed in its current form.

Energia currently had an inferred mineral resource of 16.9-million tons, at 350 parts per million uranium oxide (U3O8) for 13-million pounds of U3O8 at the Carley Bore deposit at its Nyang project.

Cauldron, in turn, recently announced an exploration target of between 30-million and 115-million pounds of U3O8 at its wholly owned Yanrey project, in Western Australia, which is adjacent to the Nyang deposit.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

Comments

Showroom

Universal Storage Systems (SA)
Universal Storage Systems (SA)

South African leader in Steel -Racking, -Shelving, and -Mezzanine flooring. Universal has innovated an approach which encompasses conceptualising,...

VISIT 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 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 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:0.149 0.182s - 106pq - 2rq
Subscribe Now