Middle Island's offer for Alto lapses
PERTH (miningweekly.com) – ASX-listed Middle Island Resources’ takeover offer for fellow-listed Alto Metals has lapsed after a 50% minimum acceptance condition was not met by the deadline of November 29.
Middle Island’s takeover offer had consisted of six of its own shares for every one Alto share held, valuing Alto shares at around 5.4c each.
Middle Island on Thursday told shareholders that the company’s directors continued to believe that the combination of the two company’s gold assets offered a substantial growth opportunity for the shareholders of a combined entity, with the combined entity to have had a low start-up cost and near-term gold production using Middle Island’s existing Sandstone gold processing plant and infrastructure, along with the consolidation of significant gold resource upside and exploration potential within the combined tenure.
Alto owns the Sandstone gold project, which is currently estimated to host some 261 000 oz of gold in the East Murchison mineral field of Western Australia.
Middle Island also owns a Sandstone project, with an estimated indicated and inferred mineral resource of 537 000 oz, and an exploration target of between 900 000 oz and 1.5-million ounces.
Middle Island told shareholders that the company would continue to pursue "meaningful dialogue" with the Alto board to seek value add for both sets of shareholders.
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