JOHANNESBURG (miningweekly.com) – Platinum junior Sylvania Resources has increased its takeover offer for ASX-listed Great Australian Resources (GAU) to one Sylvania share for every 12 GAU shares.

The junior miner announced in May that it would make takeover offers for two companies, namely GAU and SA Metals, formerly called Pan Palladium, as they had interests in platinum-group metals exploration projects in South Africa.

These assets, combined with its own in the South African Bushveld Complex, would allow it to create long-term benefits.

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

The company had previously made an offer for one of its shares for every 18 GAU shares.

It said on Wednesday that the increased offer represented a premium of 68% based on the closing price of Sylvania’s shares and GAU’s shares on May 11, when the takeover was first announced, compared with a premium of about 12% previously.

The offer also represented an implied value of about A$0,13 for each GAU share and a premium of 119% on the closing price of Sylvania and GAU on the ASX on June 9.

The total consideration payable by Sylvania under the increased offer, if 100% acceptance is given, would be about 8,87-million Sylvania shares, representing a value of about A$8,8-million.

Sylvania stated that GAU shareholders would have the opportunity to realise a premium for their shares and retain long-term exposure and upside in the development of GAU’s exploration projects through the junior miner.

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