PERTH (miningweekly.com) – Metals miner Independence Group has again urged the shareholders of takeover target Panoramic Resources to accept a takeover offer, but has reserved its rights to terminate the offer in the wake of a capital raising by Panoramic.
Panoramic earlier this month raised the need for additional funds, given the below budget production and the reduced revenues from its Savannah project, in Western Australia.
The nickel miner has launched an operational review of the project, with a warning that the full-year production guidance would not be met.
Independence on Friday said that any capital raising undertaken by Panoramic would be in breach of the takeover offer conditions, and could result in the company terminating the offer.
Independence is offering one of its own shares for every 13 Panoramic shares held, valuing the takeover target at A$312-million.
Panoramic has entered into a confidentiality deed with Independence, allowing the suitor to conduct a due diligence on both the company and the Savannah project. The due diligence will start immediately, and would likely last until early December.
Panoramic has maintained that shareholders not take any action with regards to the Independence offer, saying that access to the data room would be provided to a number of parties, including Independence, allowing third parties to put forward alternative proposals with the potential to maximise the value for shareholders.
Panoramic said that should alternative proposals be received, they would be assessed by the board against the Independence offer, as well as the expected standalone value available to shareholders through the continued development and mining of the Savannah North project.