PERTH (miningweekly.com) – HQ Mining Resources Holding has informed Golden Cross Resources that it plans to make a takeover offer for the ASX-listed junior.
A letter from HQ Mining indicated that the offer would be priced at 7c a share and would be conditional upon a 50.1% minimal acceptance level. The offer would also be subject to Foreign Investment Review Board approval.
Golden Cross advised shareholders not to take any action, noting that the letter from HQ Mining did not constitute a formal offer.
If a takeover offer did eventuate, Golden Cross’ independent directors would provide a formal recommendation, along with an independent expert report.
Golden Cross shares were trading more than 25% higher at the close of business on Monday, with the company’s shares reaching a high of 7.3c each.
Golden Cross holds a number of tenements across Australia, most notable of which is its Copper Hill project, in New South Wales.