PERTH (miningweekly.com) – The directors of takeover target Energia Minerals have told shareholders to hold off on taking action on a takeover offer from fellow-listed Cauldron Energy.
Cauldron was offering Energia one of its own shares for every eight Energia shares held, implying a value of A$0.019 a share.
Energia’s directors told shareholders that not only was the offer highly conditional, as it included a 90% minimum acceptance condition, it also discounted Energia shares by some 20.8% compared to its closing price on May 3.
Furthermore, Energia’s three largest shareholders, which together hold 48.19% of the company, have said that they would not accept the offer at its current price, and under the current terms. This meant that the 90% minimum acceptance condition could not be satisfied.
The company said that it would review Cauldron’s bidder’s statement and provide shareholders with a recommendation, based on the assessment of an independent expert.
Energia currently had an inferred mineral resource of 16.9-million tons, at 350 parts per million uranium oxide (U3O8) for 13-million pounds of U3O8 at the Carley Bore deposit at its Nyang project, in Western Australia.
Cauldron, in turn, recently announced an exploration target of between 30-million and 115-million pounds of U3O8 at its wholly owned Yanrey project, which is adjacent to the Nyang deposit.