Photo by: Bloomberg
PERTH (miningweekly.com) – The board of ASX-listed Panoramic Resources has urged shareholders not to take any action following an unsolicited scrip offer from fellow-listed miner Independence Group.
Independence on Monday announced its intention to make an off-market takeover offer for Panoramic, offering one of its own shares for every 13 Panoramic shares held.
The offer implied a value of 47.6c a share for Panoramic’s share, valuing the company at A$312-million.
Independence on Monday said that the offer represented an attractive and significant premium compared with Panoramic’s trading price, with the offer representing a 42% premium to Panoramic’s closing price on November 1, and a 51% premium to its one-month volume weighted average share price.
“The offer represents a rare instance of genuine and obvious mutual benefit for both Panoramic and Independence shareholders. Panoramic shareholders will be able to crystallise future value from Savannah at a very attractive price and retain exposure to its upside potential, while also gaining exposure to Nova and Tropicana and Independence’s extensive portfolio of belt-scale exploration projects prospective for nickel and copper,” said Independence MD and CEO Peter Bradford.
“The company remains leveraged to the nickel market and we believe Independence has the financial, operational and technical capability to fully unlock value from Savannah and Panoramic’s exploration portfolio.
“Given our unique positioning as Australia’s largest independent producer of nickel, to unlock value at Savannah, we decided to provide the offer for the consideration of all Panoramic shareholders.”
First nickel ore from Panoramic’s Savannah North operation is expected in November, and at full production, the operation will produce around 950 000 t/y of ore, delivering 90 200 t of nickel in concentrate, 50 700 t of copper in concentrate and 6 700 t of cobalt in concentrate over the mine life, or 10 800 t/y of nickel in concentrate, 6 100 t/y of copper in concentrate and 800 t/y of cobalt in concentrate.
The Savannah orebody is expected to deliver some 19 800 t of contained nickel, while Savannah North is expected to deliver an estimated 88 900 t of contained nickel.
The offer for Panoramic would be subject to a number of conditions, Independence said, including a 50.1% minimum acceptance condition.
Panoramic told shareholders that the company would evaluate the offer from Independence, and would provide shareholders with a recommendation in due course.