PERTH (miningweekly.com) – The share price of ASX-listed Flinders Mines rose by nearly 13% on Wednesday after the company scrapped plans to delist from the ASX.
Flinders said that the decision to withdraw its revised delisting application from the ASX followed after shareholder consultation.
Flinders in February was forced by the ASX to seek shareholder approval for its proposed delisting in order to avoid orders from the Takeovers Panel, after a number of shareholders turned to the watchdog following Flinders’ application to delist.
As part of the delisting, Flinders had proposed to undertake an on-market buy-back and an unmarketable parcels sales process, which would be funded by a loan facility from Flinders’ major shareholder TIO NZ. This loan facility would be repaid through a proposed non-renounceable, pro-rata rights issue following the buy-back.
The company on Wednesday told shareholders that it would now reconsider its future strategy, and would provide an update to shareholders in due course.
Flinders shares were trading at a high of 4.7c each on Wednesday.