PERTH (miningweekly.com) – Takeover target Alto Metals has revealed that its major shareholders, holding a combined 32.12% of the company, would not accept a takeover offer from fellow-listed Middle Island.
Middle Island at the start of March revealed a proposed all-scrip takeover offer for Alto, offering five of its own shares for every one Alto share held.
The offer is highly condition, and includes a 90% minimum acceptance condition.
Alto on Tuesday said that it has now received separate notices from Windsong Valley and Marymount, Sinotech and Enterprise Metals, all saying that they would not agree to the sale of their combined 68.6-million shares in the company.
Middle Island is expected to send its bidder’s statement out before the end of April, with Alto telling its shareholders not to take any actions until the company could make a recommendation on the offer.
Alto owns the Sandstone gold project, which is currently estimated to host some 261 000 oz of gold.
Middle Island also owns a Sandstone project, with an estimated indicated and inferred mineral resource of 537 000 oz, and an exploration target of between 900 000 oz and 1.5-million ounces.