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CoAL to accept Bushveld’s offer for Lemur

31st July 2013

By: Creamer Media Reporter

  

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JOHANNESBURG (miningweekly.com) – Three shareholders in Lemur Resources have indicated that they would accept Bushveld Minerals’ takeover offer for the Madagascar-focused coal developer, including significant shareholders Coal of Africa Limited (CoAL), which holds a 16.88% stake.

Aim-listed Bushveld said on Wednesday that the three shareholders, together representing 27.27% of Lemur’s issued shares, would accept its offer of three shares for every five shares held, which Lemur said was “neither fair, nor reasonable”.

Oak Nominees owns 9.35% of Lemur and LA Holdings holds 1.04% of the company.

"We are delighted with this strong sign of support for the offer and derive great encouragement that the offer has been well received by the Lemur shareholders,” commented Bushveld CEO Fortune Mojapelo.

When combined with Bushveld's existing 14.57% relevant interest in Lemur, the company’s interest in the coal developer would swell to about 42% upon acceptance.

“We trust that other Lemur shareholders will take note of this strong support and choose to support the bid as well," Mojapelo said.

Last week, Lemur formally advised shareholders to reject the offer. It also raised concern about Bushveld’s cash position of £430 000 and its ability to continue as a going concern.

Bushveld has extended the offer period for Lemur Resources to August 30, from an initial closing date of August 9.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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