PERTH (miningweekly.com) – A takeover play for ASX-listed Mungana Goldmines has failed after the offer period ended without a sufficient take-up by shareholders.
Suitor Auctus Chillagoe had initially offered to acquire all the shares in Mungana for 13.5c each, but later upped the offer to 17c a share on the condition that it acquired an interest of 70% or more in Mungana.
An independent expert had ruled the initial 13.5c a share offer as insufficient, despite the offer price being higher than Mungana’s share price at the time of the initial offer.
The independent expert in May assessed that a fair market value for Mungana’s shares would be between 24.19c and 31.69c each.
Mungana on Monday told shareholders that, despite an increase in the offer price, the Auctus offer had remained subject to a number of defeating conditions, with one or more of those remaining in place by the end of the offer period.
As a result of the offer period lapsing, the acceptances received into the offer would now be cancelled.