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Capricorn unimpressed by proposed bid, opens data room to others

2nd April 2019

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – ASX-listed Capricorn Metals on Tuesday flagged an unsolicited possible takeover offer from a consortium between Emerald Resources and Hawkes Point Holdings.

Capricorn told shareholders that it had received a nonbinding indicative and incomplete letter of intent from the consortium, outlining its intention of acquiring the company at a price of 11c a share, comprising 5.5c in cash and 5.5c in Emerald scrip.

Capricorn has rejected the approach, saying that it undervalued the company and its assets. However, it has told Emerald and Hawkes Point that it remained open to considering a superior proposal.

The junior company will now launch a formal process seeking expressions of interest either in the company as a whole, or in its Karlawinda gold project.

The company said that a number of companies have expressed interest in accessing the data room, with the board intending to reopen the virtual data room on the successful completion of a previously announced entitlement offer to raise some A$10-million.

Capricorn shares traded nearly 16% higher on Tuesday, at a high of 8.6c a share, up from an opening price of 8c a share.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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