Photo by: Bloomberg
PERTH (miningweekly.com) – The directors of Mongolia-focused Auminco Mines have advised shareholders to accept the tabled offer from ASX-listed Viking Ashanti.
Viking initially offered Auminco shareholders about 129.7-million shares, which would have resulted in that company holding a 59% interest in the enlarged entity, with Viking’s current shareholder base retaining a 41% interest.
However, the agreement was amended in December last year, and resulted in Viking proposing to acquire all Auminco’s shares in return for 61.2 of its own shares, and 20.4 of its options, for every 100 Auminco shares held.
This meant that Viking would acquire Auminco in exchange for 81-million shares and 27-million unlisted options.
Auminco told its shareholders on Wednesday that accepting the offer would improve the company’s liquidity, while a A$3-million capital raising to be conducted by Viking would assist in progressing Auminco’s Berkh Uul coal project towards production.
Auminco’s Mongolian projects include five coal projects and one zinc project. The company’s flagship asset, the Khonkhor Zag metallurgical coal project, has been the focus of recent exploration, with a resource estimate expected in December.
The takeover offer was still subject to a number of conditions, including shareholder and regulatory approval, Viking Ashanti undertaking the proposed capital raising, and Viking Ashanti achieving a 90% acceptance of the offer.