JOHANNESBURG (miningweekly.com) – Aim-listed Bushveld Minerals on Monday announced an off-market takeover offer to acquire Madagascar-focused Lemur Resources.
The offer, which was not subject to a minimum acceptance condition, would see Bushveld offering three of its shares for every five Lemur shares. This valued each Lemur share at A$0.099 apiece or a total equity value of about A$19.1-million at a premium of 65.5% to Lemur's closing share price on the ASX of A$0.060 on May 10.
Bushveld Minerals indicated that, should it be successful, the offer would elevate its status as a diversified African junior mining company with a portfolio of mineral assets in South Africa and Madagascar.
It added that the offer would also enable Lemur shareholders to acquire exposure to the Bushveld iron-ore and Mokopane tin projects, in South Africa, as well as mineral projects in these commodity segments.
Bushveld was preparing a formal bidder's statement in respect of the offer, which it would lodge with the ASX and Australian Securities and Investments Commission shortly.
Lemur, however, advised its shareholders to take no action in relation to the offer.
The company indicated that its board had established an independent board committee consisting of Marcello Cardaci and Ryan Rockwood to consider and respond to the offer.
The independent directors would keep shareholders informed of further developments and would provide a formal recommendation on the offer for shareholders to make an informed decision.