PERTH (miningweekly.com) – Takeover target Lincoln Minerals has urged shareholders not to accept the takeover offer from fellow listed Quantum Graphite.
Quantum Graphite on Tuesday lodged a bidder’s statement offering one of its own shares for every 40 Lincoln shares held. The offer implied a value of 1.02c a share for each Lincoln share held, and represented a more than 30% premium to Lincoln’s most recent share price.
Lincoln on Friday told shareholders that the implied value of the offer failed to recognise the inherent value of Lincoln, and that the directors could not be certain that the implied value asserted by Quantum Graphite was sustainable.
Quantum holds the Uley flake graphite mineral deposit, in South Australia, as well as a downstream joint venture for the manufacture of coarse natural flake-based thermal storage media.
In its bidder’s statement, Quantum noted that the development of Lincoln’s assets within the company’s own business had the potential to deliver significant synergies that would generate greater value for Lincoln shareholders compared with the development of these assets by Lincoln as a standalone company.
Lincoln holds base metals, iron-ore and graphite exploration assets in South Australia, including its Kookaburra Gully graphite project.