PERTH (miningweekly.com) - ASX-listed Magma Metals on Monday labeled a takeover offer by fellow listed Panoramic Resources as “opportunistic”, and has advised shareholders to hold off on taking any action.

At the start of this month, nickel miner Panoramic launched an off-market takeover bid for the ASX- and TSX-listed Magma, offering two of its own shares for every 17 Magma shares held.

The offer implied a value of 14.94c a Magma share, and represented an 86.8% premium to Magma’s closing price on February 2, as well as an 88% premium to the one-month volume weighted average price of Magma shares.

Magma told shareholders on Monday that the timing of the unsolicited offer appeared to be highly opportunistic. The miner said that the board would only make a recommendation on the takover offer once a bidder’s statement has been received and analysed.

Panoramic already owns a 9.34% shareholding in Magma, which was currently focused on developing its flagship Thunder Bay North platinum-palladium-copper-nickel project, in Ontario.
 

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