PERTH (miningweekly.com) – Takeover target Alto Metals on Thursday confirmed that it was in talks with privately held Adaman Resources around the potential divestment of its Sandstone project, but denied that it had received a competing takeover offer from the company.
Alto was responding to reports that it had received a counter offer from Adaman to the current off-market takeover offer from shareholder Goldsea Australia Mining.
Adaman has recently acquired a 10.3% stake in Alto through on-market purchases.
Alto said on Thursday that it has held conversations with several parties that have indicated an interest in the Sandstone gold project, including Adaman, but that it was not in receipt of any counter proposal to the Goldsea offer capable of presenting to shareholders.
Goldsea in March lodged a bidder’s statement offering 6.5c a share in cash for every Alto share held, and a separate cash offer for Alto options. The Alto board is currently in the process of finalising a target’s statement and has reiterated that shareholders and option holders should not take any action until a recommendation has been made.