PERTH (miningweekly.com) – ASX-listed Mantle Mining Corporation has abandoned its merger plans with International Base Metals, after the two companies failed to reach commercial terms on the agreement.
In January, Mantle announced plans to merge with unlisted International Base Metals, which was exploring for copper in Namibia and had some A$16.5-million cash in hand.
Under a nonbinding heads of agreement inked at the start of the year, Mantle Mining had offered International Base Metals shareholders more than 79.7-million shares in Mantle, and 30-million consideration options for their shareholding in the takeover target.
Mantle told shareholders on Thursday that with the decision not to pursue a merger with International Base Metals, the company’s focus would remain on completing the acquisition of Morning Star Gold, and to bring the Morning Star gold mine, in Victoria, and the Norton gold mine, in Queensland, into production within the near term.
In August last year, Mantle reached an agreement with the deed administrators of fellow-listed Morning Star Gold to acquire a 95% interest in the company for a cash payment of A$750 000.
The company would also have obligations to pay or procure a further A$3-million in staged payments, over the next one-and-a-half years, to Morning Star Gold’s secured creditor.
Mantle has called a shareholders meeting for the end of March, which would allow shareholders to vote on the Morning Star transaction.