Alliance gets an offer from Gandel
PERTH (miningweekly.com) – ASX-listed Alliance Resources have urged shareholders not to respond to a takeover offer from Gandel Metals, until the company has had time to assess the offer.
Gendal earlier this week launched a A$0.14-a-share takeover offer for Alliance, valuing the takeover target at A$21.4-million.
Gandel has argued that Alliance’s strategy to develop its Wilcherry gold and base metals project, in South Australia, through further drilling and exploration activities, would only deplete the company’s financial resource, and would result in Alliance needing to undertake more capital raises.
The suitor argued that Alliance would be better able to develop Wilcherry as an unlisted entity.
Gandel also expressed reservations about the possibility of feasibility studies and future production from Wilcherry, despite additional drilling being planned, saying that if its takeover of Alliance proved successful, it would focus the company’s business operations on activities that would expedite the development of known resources rather than using its capital to undertake further exploration activities.
Alliance on Tuesday said that the company will commission an independent expert report for the offer, and will make a full assessments of the merits of the offer, before deciding on a course of action.
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