PERTH (miningweekly.com) – The South African shareholders of ASX-listed Tawana Resources will not be receiving shares in Alliance Mineral Assets, as part of a merger agreement between Tawana and Alliance.
The two companies in April agreed to pursue a scheme of arrangement, under which Tawana shareholders would receive 1.1 new Alliance shares for every Tawana share held, leaving both sets of shareholders with a 50% interest in the merged entity.
However, Tawana said on Monday that following consultation with the JSE, it was determined that shareholders registered in South Africa would be treated as ineligible shareholders for the purpose of the scheme, and will receive the net proceeds from the sale of the Alliance shares in lieu of receiving Alliance shares under the scheme.
Alliance shareholders were set to vote on the merger on September 4, with Tawana shareholders expected to vote on September 6.
Tawana has previously told shareholders that the merger provided the potential for a simplified single-ownership structure for the Bald Hill project, in Western Australia, which was currently the subject of a JV agreement between the two companies.
The merged entity would also have a strong balance sheet, with both the capacity and flexibility to pursue additional exploration initiatives on the combined tenement package, and to pursue project expansion opportunities, as the market demanded.