JOHANNESBURG (miningweekly.com) – ASX-listed Metallica Minerals has increased its stake in takeover target Queensland Ores, after the tungsten and molybdenum producer's largest shareholder, Talbot Group Holdings, accepted Metallica's offer.

Metallica now holds a 10,36% interest in Queensland Ores, of which about 5,25% previously belonged to the Talbot Group.

In early April, Metallica announced its intentions to combine its operations and assets with Queensland Ores, offering one share for every 22 Queensland Ores shares. In February, Outback Metals made an offer of one share for 4,74 Queensland Ores shares.

Metallica stated on Tuesday that it intended to waive the minimum acceptance conditions of its offer, which would have required it to acquire a relevant interest of at least 90% of the Queensland Ores shares on offer before the end of the offer period, if it received acceptances to at least 50,1% of all Queensland Ores shares.

This meant that once Metallica has received acceptance which would take its relevant interest to at least 50,1% of all Queensland Ores shares, and if the other conditions of the takeover offer were satisfied or waived, Metallica would issue its shares to those Queensland Ores shareholders, which have accepted its takeover offer.

Metallica noted that Queensland Ores had an immediate cash requirement to fund working capital and debt repayment to rival bidder Outback Metals.

If Metallica received the relevant acceptance by the end of the offer period, it intended to offer Queensland Ores up to A$1-million in cash funding to enable it to meet its immediate working capital and debt repayment obligations.

However, it added that in its bid, Outback Metals had not disclosed how it intended to fund Queensland Ores if it only achieved a majority ownership of less than 90%.

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