Photo by: Bloomberg
PERTH (miningweekly.com) – Nickel miner Mincor Resources has urged shareholders not take any action in relation to an on-market takeover from shareholder Wyloo Metals.
Wyloo currently holds a 19.9% interest in Mincor, and has offered A$1.40 in cash for every Mincor share not already owned by the company, valuing the takeover target at some A$760-million on a fully diluted basis.
The offer represented a 35% premium to Mincor’s last closing price.
Wyloo said in a statement on Tuesday that its proposed acquisition of Mincor was in line with the company’s strategy to invest in and develop projects that will produce the raw materials needed for the rapid decarbonisation of the global economy.
Wyloo said that the offer represented attractive value to Mincor shareholders, particularly given the current risks and uncertainties associated with remaining a Mincor shareholder in the face of prevailing economic and equity market risks.
“Wyloo considers these risks may be weighing on Mincor’s valuation, as demonstrated by the 49% decline in its share price over the last 12 months,” the company said in a statement.
Wyloo Metals CEO Luca Giacovazzi said Wyloo was providing an immediate opportunity for all Mincor shareholders who wish to dispose of their holdings to do so at a significant premium to Mincor’s last closing price.
“Wyloo’s offer is unconditional; shareholders can sell into Wyloo’s on-market bid today and receive certain cash value for their Mincor shares,” he added.
Mincor has urged shareholders not to take action on the Wyloo offer, warning that those shareholders who sell their shares on market, would not be able to participate in any higher offer which could emerge.
“We are in a world where the adoption of electric vehicles and industrial decarbonisation continues to increase demand for high-grade nickel sulphides. The grade, location, metallurgy and exploration upside of Mincor’s Kambalda nickel sulphide assets mean that they are highly strategic for industry players operating both upstream and/or downstream in battery and critical minerals,” said Mincor CEO Gabrielle Iwanow.
“As Mincor approaches full ramp-up in mining, and continues to pursue its highly prospective exploration opportunities, we believe that this strategic value will continue to grow.”
The Wyloo bid will open on April 5.
Wyloo last year acquired TSX-V listed Noront Resources in a C$1.10 a share bid, gaining ownership of the Ealge’s Nest nickel-copper-platinum-palladium project, in Ontario. The company has committed to spending C$25-million toward feasibility studies to investigate the potential for battery material production in Ontario and would assess the potential to produce the raw materials to supply emerging battery markets.