https://www.miningweekly.com
Exploration|Gold|Projects
Exploration|Gold|Projects
exploration|gold|projects

Metalicity makes a play for JV partner

14th September 2021

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

Font size: - +

PERTH (miningweekly.com) – Junior gold explorer Metalicity on Tuesday flagged its intention to make an off-market all scrip takeover bid for all of the fully paid ordinary shares in its joint venture (JV) partner in the Kookynie and Yundamindra gold projects, Nex Metals Exploration.

Metalicity’s offer to Nex Metals shareholders is 4.81 Metalicity ordinary shares for every Nex Metals share on issue, valuing Nex Metals equity at A$12.8-million based on Metalicity’s closing share price on September 13.

Under Metalicity’s offer, Nex Metals shareholders would own 37.5% of the enlarged entity that would hold a 100% interest in the Kookynie and Yundamindra gold projects, with improved access to capital, and an enhanced balance sheet position.

Metalicity has earned a 51% controlling interest in the Kookynie and Yundamindra gold projects after successfully completing a A$5-million exploration programme, and the projects are now under the direct operational control of Metalicity.

The company said on Tuesday that it believed the acquisition of Nex Metals and the opportunity to combine both companies would optimise the exploration and development potential of the projects by bringing the ownership under one listed entity.

“The combination of Metalicity and Nex Metals makes logical sense. The primary asset of both companies is the highly attractive Kookynie and Yundamindra gold projects. Rationalising the ownership of the projects into a single listed entity creates a number of compelling benefits for both groups of shareholders, and allows us to better realise and maximise the value of the projects for all shareholders,” said Metalicity chairperson Andrew Daley.

“We envisage the combined entity would be able to accelerate the development of the projects through better access to capital, reduced costs and greater efficiencies from removing the current JV structure.

“Metalicity has been in dialogue for over 12 months with Nex Metals regarding a combination of the two companies. We have presented a compelling proposal to the board of Nex Metals on multiple occasions and believe this offer should be placed in front of their shareholders. We continue to have a close working relationship with Nex Metals via the JV and we look forward to the fast and amicable completion of this transaction for the benefit of all shareholders.

“We expect Nex Metals shareholders want to retain exposure to the potential upside of Kookynie and Yundamindra so have structured the offer on a scrip basis with an attractive premium to the most recent closing price.”

The offer is subject to a number of conditions, including a 90% minimum acceptance.

Edited by Creamer Media Reporter

Comments

Showroom

Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 
Flameblock
Flameblock

FlameBlock is a proudly South African company that engineers, manufactures and supplies fire intumescent and retardant products to the fire...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

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?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.07 0.104s - 107pq - 2rq
Subscribe Now