PERTH (miningweekly.com) – The proposed merger between ASX-listed MHM Metals and Bermudan company Alliance Mining Commodities (AMC) has been called off, with the two companies remaining mute as to the reasons behind the decision.
MHM and AMC in November singed a merger term sheet, under which MHM would have acquired AMC by way of a scrip exchange, and subject to a number of conditions, including due diligence, and regulatory and shareholder approvals.
MHM had hoped that the merger with AMC would give the company access to the Koumbia bauxite project, in Guinea, where AMC has spent more than $40-million to date on exploration.
MHM told shareholders on Monday that the company would continue to advance a number of other potential opportunities previously identified, where its balance sheet can be applied to add value to the benefit of shareholders.
In the meantime, the company’s share trading on the ASX will remain suspended until a "suitable" new opportunity that meets the ASX listing rules can be identified.