Photo by: Reuters
PERTH (miningweekly.com) – Rumours abound that ASX-listed Echo Resources and Metaliko Resources are planning a merger, after both went into a trading halt pending an announcement around a "material transaction".
Echo in August received an indicative nonbinding takeover offer of 15c a share from an unnamed third party. The proposal had been subject to the completion of a due diligence.
Echo is exploring for gold, copper and nickel deposits in Western Australia and Queensland and currently owns the Julius gold discovery in the Yandal gold province.
Metaliko owns the Yandal gold project, in Western Australia, which includes the two-million-tonne-a-year Bronzewing milling facility, a 280-room village, and project tenements and production infrastructure.
The Cockburn prospect, within the Yandal project, is estimated to host a resource of 5.59-million tonnes, at 1.94 g/t gold for 349 000 oz.
Both companies were expected to restart trading on September 30.