PERTH (miningweekly.com) – The directors of ASX-listed junior Amex Resources have unanimously recommended that shareholders accept a 50c a share all-cash takeover offer from Waratah International.
Amex on Monday said the offer placed a 37.5% premium on the company’s 20-day volume weighted average share price and offered a 38.89% premium to Amex’s last traded price of 36c a share on March 8.
The takeover offer was subject to a number of conditions, including a 90% acceptance condition, that Amex optionholders agree to the cancellation of their options and that the Mba Delta project contractor agree to the cancellation of its conditional call option.
Amex said on Monday that, in recommending the offer to shareholders, the company’s directors took into consideration the fact that the all-cash offer provided shareholders with certain value and liquidity for their Amex shares, compared with the risk and uncertainty with remaining a shareholder in the company.
Particularly, the board considered Amex’s ability to refinance amounts owing to its lenders, or to alternatively raise additional cash through debt equity to meet the company’s exploration and development commitments, while continuing as a going concern.
Amex’s major project is the Mba Delta iron-sands project, in Fiji, which has a resource of some 220-million tonnes, averaging 10.9% iron.