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Phoenix Gold reiterates plea to shareholders to reject takeover offer

9th October 2015

By: Natalie Greve

Creamer Media Contributing Editor Online

  

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JOHANNESBURG (miningweekly.com) – Sydney-listed Phoenix Gold has reiterated its appeal to shareholders to reject an offmarket takeover offer by Evolution Mining, saying it undervalues Phoenix’s shares and does not fairly reflect the value of its assets.

Evolution’s August offer, which would expire on October 26, saw it offering a headline price of 12c a Phoenix share, which was a 20% premium to an earlier takeover offer tabled by Chinese major Zijin Mining.

The Australian gold company was offering 0.06 of its own shares and 6c in cash for every Phoenix share held, applying a value of 12.94c to Phoenix shares, subject to the gold price not falling below A$1 250/oz.

Encouraging a rejection of the offer, Phoenix reiterated on Friday that it would diminish shareholders’ exposure to any potential increase in value that the Phoenix assets offered.

Moreover, Phoenix’s assets carried significant strategic value for Evolution following the latter’s recent asset acquisitions in the region, which was not fully reflected in the offer.

“If you accept the offer, your shareholding in Evolution will represent a very small proportion of the total evolution shares on issue.

“The value of any future dividend entitlements to you as an evolution shareholder is likely to be immaterial,” Phoenix said in a statement on Friday.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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