PERTH (miningweekly.com) – The directors of takeover target Demetallica have urged shareholders to accept a revised offer from fellow listed AIC Mines.

AIC Mines has previously offered one of its own shares for every 1.5 Demetallica shares held, valuing the company at 33.7c a share, or at A$36-million. However, the suitor on Monday increased its offer to one AIC Mines share for every 1.3 Demetallica shares held.

The new offer represents an implied offer of 39c a share for the Demetallica shares.

The Demetallica board has now unanimously recommended that shareholders accept the revised offer, in the absence of a superior proposal, with each board member providing an undertaking to accept the offer for their own shares.

Under the recommended offer, Demetallica shareholders will own a near 21% interest in the combined company.   

“The consolidation of our Chimera project with the Eloise mine makes obvious sense. We are pleased to have reached commercial agreement with AIC Mines such that both AIC Mines and Demetallica shareholders can enjoy the synergies this consolidation can deliver,” said Demetallica MD Andrew Woskett.

“Given the uniqueness of the situation, in terms of the assets so plainly being worth more together than they are individually, we have strong support for the transaction from a large number of our shareholders, and expect similar support from the market more broadly as it understands the robust long-term copper/gold producer this creates.

“I am extremely proud of the exploration team I have around me, moving quickly to elevate the prominence of Jericho as one of Australia’s most exciting copper/gold growth projects, as demonstrated by the recent mineral resource estimate and new exploration targets outlined for Jericho.”

AIX MD Aaron Colleran said that combining AIC Mines and Demetallica was a logical consolidation and unlocks significant value for both AIC Mines and Demetallica shareholders.

“I look forward to working with Woskett to efficiently close the transaction and integrate the Demetallica assets, people and knowledge base with AIC Mines. This is a great outcome for everyone involved,” he added.

AIC Mines currently holds a 10.2% interest in Demetallica, and the recommended offer is unconditional. The offer is set to close on November 28, and AIC Mines said that it would not be increased.