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Evolution extends Phoenix offer

16th October 2015

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Gold miner Evolution Mining has declared its takeover offer for fellow-listed Phoenix Gold free of all remaining conditions and has extended the closing date of the offer to November 26.

Evolution was offering 6c in cash and 0.06 of its own shares for every Phoenix share held.

The company pointed out on Friday that its share price had, since launching the offer in September, appreciated strongly, with the offer now equivalent to 15.3c a share for Phoenix shares, based on Evolution’s volume-weighted average share price on October 14 and 15.

Evolution believed the offer was an attractive option for Phoenix shareholders and provided certainty of a strong premium, as well as ongoing exposure to share price upside that could be generated through the transaction.

Phoenix has, however, again advised shareholders to reject the offmarket takeover offer.

“Despite the Evolution offer now being free of conditions, and despite the appreciation in Evolution’s share price, the directors of Phoenix continue to unanimously recommend that Phoenix shareholders reject the Evolution offer, as it has not been modified since it was initially made and does not fairly reflect the value of Phoenix’s assets,” the company said.

Phoenix pointed out that the Evolution offer had, to date, gained minimal traction, with acceptances of only 0.18% of Phoenix’ s total shares on issue.

At the end of the September quarter, Phoenix had some A$4.1-million cash at hand.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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