Creamer Media Login

Melior and Metallica point fingers as merger falls apart

2nd January 2019

Creamer Media Senior Deputy Editor: Australasia

Font size: - +

PERTH (miningweekly.com) – ASX-listed Metallica Minerals has terminated proposed merger with TSXV-listed Melior Resources.

The two companies in September last year struck a binding merger agreement to create a diversified Queensland mining company, which will combine mineral sands and bauxite assets.

Under the terms of the agreement, Metallica would have acquire all of the issued and outstanding common shares of Melior in exchange for Metallica ordinary shares at an agreed exchange ratio of 20 Metallica shares for every one Melior share.

The proposed merger was expected to close at the end of December, however, Metallica said on Wednesday that the conduct of Melior, including breaches of representations, warranties and covenants in the arrangement agreement surrounding the company’s debt covenants, was a ‘significant contributing factor’ to the conditions precedent to the completion of the merger not being satisfied on time.

Metallica said that that it would evaluate potential recourse for damages caused by Melior’s breaches.

Melior for its part has told shareholders that the company’s right to terminate the agreement had arisen out of Metallica’s ‘failure to perform certain covenants and obligations’ required under the agreement, resulting in certain conditions precedent being incapable of being satisfied.

With the merger agreement now terminated, Melior said that it would continue to focus on the ramp-up of production at its Goondicum ilmenite and apatite project, in Queensland, and would seek its own listing on the ASX.

Edited by Creamer Media Reporter

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

Click Here

MAGAZINE & ONLINE

➕

RESEARCH CHANNEL AFRICA

➕

CORPORATE PACKAGES

CLICK FOR A QUOTATION

➕