Metro gains majority stake in Gulf Alumina, rival bid falls by the wayside
PERTH (miningweekly.com) – ASX-listed Metro Mining has declared its takeover offer for Gulf Alumina unconditional, after shareholders representing some 57.3% of the company’s issued capital accepted its offer.
Metro initially offered Gulf shareholders a choice between 60c in cash a share, or a cash and shares alternative of 50c in cash and one metro share for each Gulf share held, to rival a bid from fellow-listed Moly Mines.
The offer was increased to either 62c in cash, or 52c in cash plus one share in Metro, for each Gulf share held. The company has also extended its offer period by just under three weeks, to December 23.
The Moly Mines bid has fallen by the wayside, after the ASX determined that it would not allow Moly to relist, should it proceed with the acquisition of Gulf, citing concern over the ownership of Moly’s largest shareholder, the Hanlong Group.
With Metro now gaining the majority interest in Gulf, the company said on Monday that it would proceed with the compulsory acquisition of the remaining Gulf shares.
Furthermore, the company would immediately start work to integrate Metro and Gulf’s adjoining bauxite projects on Western Cape York, with a view to creating a large, independent, long life, low capital cost and high margin Australian bauxite company.
Metro would also prepare a bankable feasibility study that would reflect a higher production rate, and a longer mine life than could be achieved at its standalone Bauxite Hills project, north of Weipa in Queensland. The study was expected to reflect synergies of some A$200-million, which could be realised by integrating the Gulf and Metro project areas.
The integrated project would have a bauxite reserve of over 95-million tonnes.
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