Cannon urges shareholder acceptance of takeover offer
PERTH (mininwgeekly.com) – Junior Rox Resources on Thursday said that it would accept a takeover offer for its 10% shareholding in fellow-listed Cannon Resources from Canada-based equity firm Kinterra Battery Metals Mining Fund subsidiary Kedalion Nickel.
Cannon on Thursday urged its shareholders to accept the 45c-a-share offer from Kandelion, with the board unanimously giving the offer its support.
In its target statement, Cannon noted that the cash offer provided shareholders with certainty of value for their shares in the company, and the ability to realise value in what was, prior to the offer, an illiquid company. Cannon noted that in the month prior to the offer, less than A$1-million worth of Cannon shares were traded on the ASX, compared with the offer value of A$45-million.
Furthermore, the cash offer also represented a 43% premium to Cannon’s last closing price and a 58% premium to the company’s 30-day volume weighted average share price, while mitigating the risks and uncertainties of remaining a Cannon shareholder, including near-term capital requirements and project development and technical risks.
Rox on Thursday said that based on its 8.5-million shares held in Cannon, the company expected cash proceeds of A$3.8-million from the sale of its Cannon shares. This capital, along with its recently announced A$5-million share placement and share purchase plan, will be used to progress resource drilling and near-mine exploration and feasibility work at the Youanmi gold project.
The Kendalion offer is expected to close on December 21, unless withdrawn or extended.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation