https://www.miningweekly.com
Copper|Exploration|Industrial|Mining|Platinum|PROJECT|Projects|Resources
Copper|Exploration|Industrial|Mining|Platinum|PROJECT|Projects|Resources
copper|exploration|industrial|mining|platinum|project|projects|resources

Mincor urges shareholders to hold out for higher bid

Image shows ASX trading board

Photo by Bloomberg

21st March 2023

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

Font size: - +

PERTH (miningweekly.com) – Nickel miner Mincor Resources has urged shareholders not take any action in relation to an on-market takeover from shareholder Wyloo Metals.

Wyloo currently holds a 19.9% interest in Mincor, and has offered A$1.40 in cash for every Mincor share not already owned by the company, valuing the takeover target at some A$760-million on a fully diluted basis.

The offer represented a 35% premium to Mincor’s last closing price.


Wyloo said in a statement on Tuesday that its proposed acquisition of Mincor was in line with the company’s strategy to invest in and develop projects that will produce the raw materials needed for the rapid decarbonisation of the global economy.

Wyloo said that the offer represented attractive value to Mincor shareholders, particularly given the current risks and uncertainties associated with remaining a Mincor shareholder in the face of prevailing economic and equity market risks.

“Wyloo considers these risks may be weighing on Mincor’s valuation, as demonstrated by the 49% decline in its share price over the last 12 months,” the company said in a statement.

Wyloo Metals CEO Luca Giacovazzi said Wyloo was providing an immediate opportunity for all Mincor shareholders who wish to dispose of their holdings to do so at a significant premium to Mincor’s last closing price.

“Wyloo’s offer is unconditional; shareholders can sell into Wyloo’s on-market bid today and receive certain cash value for their Mincor shares,” he added.

Mincor has urged shareholders not to take action on the Wyloo offer, warning that those shareholders who sell their shares on market, would not be able to participate in any higher offer which could emerge.

“We are in a world where the adoption of electric vehicles and industrial decarbonisation continues to increase demand for high-grade nickel sulphides. The grade, location, metallurgy and exploration upside of Mincor’s Kambalda nickel sulphide assets mean that they are highly strategic for industry players operating both upstream and/or downstream in battery and critical minerals,” said Mincor CEO Gabrielle Iwanow.

“As Mincor approaches full ramp-up in mining, and continues to pursue its highly prospective exploration opportunities, we believe that this strategic value will continue to grow.”

The Wyloo bid will open on April 5.


Wyloo last year acquired TSX-V listed Noront Resources in a C$1.10 a share bid, gaining ownership of the Ealge’s Nest nickel-copper-platinum-palladium project, in Ontario. The company has committed to spending C$25-million toward feasibility studies to investigate the potential for battery material production in Ontario and would assess the potential to produce the raw materials to supply emerging battery markets.

Edited by Creamer Media Reporter

Comments

Projects

Image of Clayton Valley lithium project
Clayton Valley lithium project, US
Updated 2 hours 10 minutes ago By: Sheila Barradas

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 
JusChek® - Disposable saliva test
Alco-Safe

JusChek® - Disposable saliva test

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Resources Watch
Resources Watch
17th July 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:0.276 0.313s - 171pq - 2rq
1:
1: United States
Subscribe Now
2: United States
2: