VANCOUVER (miningweekly.com) – The TSX-V-listed stock of junior explorer Maritime Resources jumped by 20% on Monday morning following an announcement by Atlantic Canada-focused project consolidator Anaconda Mining that it intends to take a takeover deal directly to shareholders following inaction by the Maritime board.
Anaconda offered a premium of 40% to the closing price of Maritime's stock on Friday, as it seeks to bring the Hammerdown and Orion gold projects under its control. The projects provide regional exploration upside and ore from the deposits can be processed through Anaconda's operating Pine Cove mill, at its flagship Point Rousse project, in Newfoundland and Labrador.
Anaconda advised that it had initially submitted a proposal to the Maritime board on January 29, with the only reaction since being the adoption of a shareholder rights plan.
Under the terms of the offer, Anaconda has offered to exchange 0.364 of an Anaconda share for each Maritime share held, providing an implied offer price of C$0.14 a Maritime share, valuing Maritime at just under C$13-million.
The offer price also represents a 44% premium to the volume weighted average trading price of C$0.097 per Maritime share on the TSX-V over the 20 trading days ended Firday, Anaconda advised.
Anaconda noted that the deal offers significant synergies with its Point Rousse project, with the potential to significantly reduce Hammerdown and Orion development capital costs, while significantly expanding Anaconda's mineral resource portfolio, with growth potential in both Newfoundland and Nova Scotia.
Anaconda also announced that it has assumed a C$500 000 interest-bearing secured loan provided to Maritime on April 26, 2017. Anaconda said the loan is repayable on the earlier of Maritime raising C$2-million or more in equity or debt financing, or upon Maritime committing an event of default. Anaconda has now demanded full repayment since Maritime has raised more than C$2-million in financings since April 25, 2017, without repaying the loan.
To this end, Anaconda said it will take the necessary steps to collect the loan, to enforce the security that it holds against Maritime or other parties, or to otherwise protect or enforce its interests.
Anaconda said it will file the offer with securities regulators and mail details, as well as instructions to tender shares under the offer to Maritime shareholders.
Maritime's equity rose 20% on Monday to C$0.12 apiece, with that of Anaconda remaining steady at C$0.38 a share.