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Theta continues with Focus hunt

5th January 2022

Creamer Media Senior Deputy Editor: Australasia

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PERTH (miningweekly.com) – Takeover target Focus Minerals has urged shareholders not to take any action on an updated bid from fellow-listed Theta Gold Mines.

Theta last year announced plans to acquire all shares in Focus, offering two of its own shares for every one Focus share held. The offer valued Focus shares at 36c each, representing a 41.2% premium to the company’s closing price on December 8.

The offer was conditional on Focus not proceeding with a one-for-one non-renounceable entitlement offer, priced at 25c a share. However, Focus proceeded with the capital raise, raising A$25.5-million, with the funds earmarked to fund the implementation of plans to resume gold mining at the Coolgardie gold project.

Following the capital raise, Focus’ largest shareholder, Shandong Gold, had increased its stake in the gold developer to 63.58%.

Theta Gold Mines this week said that it would now waive the condition that the entitlement offer not proceed, however, it noted that its takeover offer would only relate to the Focus shares in existence prior to the entitlement offer. As a result, the maximum interest in Focus that Theta Gold Mines could acquire under its takeover offer is 64.24%.

The suitor has now launched a replacement bidder’s statement.

Focus told shareholders on Wednesday to hold off on taking any action with regard to the Theta Gold Mines bid, until the board of directors could issue a recommendation.

While the board of directors is yet to make a recommendation, Shandong Gold has issued a letter to Focus prior to the launch of the replacement bidder’s statement, saying that it would reject the Theta Gold Mines offer in its current form.

Edited by Creamer Media Reporter

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