PERTH (miningweekly.com) – An independent expert has determined that the merger between ASX-listed Metallica Minerals and TSXV-listed Melior Resources, would be reasonable for Metallica shareholders.
The two companies in September struck a binding merger agreement to create a diversified Queensland mining company, which will combine mineral sands and bauxite assets.
Under the terms of the agreement, Metallica will acquire all of the issued and outstanding common shares of Melior in exchange for Metallica ordinary shares at an agreed exchange ratio of 20 Metallica shares for every one Melior share.
On completion of the merger, Melior shareholders will hold 64% of Metallica’s issued capital and Melior will become a wholly owned subsidiary of Metallica.
Metallica said on Friday that the independent expert had confirmed that Metallica shareholder ownership of the merged entity exceeded that implied by recent volume weighted average share prices of the two companies, and that Metallica shareholder ownership of the merged entity exceeded Metallica’s asset value contribution to the merged entity.
The directors of Metallica have urged shareholders to approve the merger with Melior