PERTH (miningweekly.com) – ASX-listed takeover target Orbis Gold on Tuesday announced the termination of a $20-million subscription and cooperation deed with fellow-listed Greenstone Resources.
The termination of the subscription agreement was a condition of a takeover offer from Canadian miner Semafo, which was offering Orbis shareholders 65c in cash for their shares.
However, Orbis has maintained its advice that shareholders take no action on the Semafo offer, saying the offer price undervalued the company.
Instead, Orbis on Tuesday announced that it would launch a nonrenounceable entitlement offer to raise up to A$20-million, with shares to be issued at 60c each. The equity raising would be subject to shareholder approval at the company’s annual general meeting, scheduled for November 28.
If approved, the proceeds from the entitlement offer would be used to advance the flagship Natougou gold project, in Burkina Faso, towards a positive construction decision, and to progress key priority exploration and appraisal targets, as well as for working capital.
Meanwhile, the company also noted that it continued to advance its discussions with third parties regarding superior alternatives to Semafo’s proposed offer.