JOHANNESBURG (miningweekly.com) – The board of ASX-listed SA Metals on Friday recommended the acceptance of an all share offer by South Africa-focused Sylvania Resources.

ASX- and Aim-listed Sylvania is offering one share for every ten SA Metals shares.

The offer equated to a value of about A$0,099 for every SA Metals share, and represented a premium of 120%, based on the closing share price of the two companies on May 11.

The board made the recommendation in the absence of a superior proposal, and also took into consideration the premium of the Sylvania offer.

SA Metals reported that the offer would give shareholders the opportunity to own shares in one of the world’s lowest cost platinum group metals producers, which has a proven management team with the technical and commercial expertise to progress the development of SA Metal’s projects.

Sylvania announced in May that it would buy SA Metals as well as Great Australian Resources (GAU). The two companies have platinum exploration projects in South Africa, which, combined with Sylvania’s assets in the Bushveld Complex, would create long-term benefits for the group.

Sylvania already held a 12,89% stake in SA Metals and a 19,9% stake in GAU.

On Wednesday, the junior company announced that it had increased its offer for GAU to one Sylvania share for every 12 GAU shares. It had previously offered one share for every 18 GAU shares.

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