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Impact makes Invictus Gold takeover offer

26th August 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Africa-focused explorer Impact Minerals has launched a takeover offer for fellow-listed Invictus Gold, with the two companies executing a merger implementation agreement.

Impact is currently the largest shareholder in Invictus, holding 73.99% of the company, and the merger is expected to result in a simpler corporate and asset ownership structure for Impact, while providing Invictus shareholders with a broader asset base, better access to capital and share market liquidity.

The merger would also result in a combined pro forma market capitalisation of around A$12-million.

Under the terms of the agreement, Impact would acquire all the shares in Invictus in a five-for-four share exchange, offering five of its own shares for every four Invictus shares held.

This would result in Impact issuing some 36.2-million new shares.

Invictus has also proposed a cancellation of all the listed Invictus options on issue and the two firms have agreed to an option scheme, which would see eligible Invictus option holders receiving one new listed Impact option for every Invictus option held, at an exercise price of A$0.20, and expiring at the end of November 2015.

The merger has been unanimously recommended by the independent directors on the Invictus board, who have also agreed to vote in favour of the merger in respect of the shares they control.

The offer was now subject to regulatory and court approval and an independent expert report.

Invictus owns some 5 800 km2 of exploration tenements in five project areas across Queensland. The company believed the tenement areas were prospective for gold, silver, copper and molybdenum mineralisation.

Impact, in turn, has an extensive list of tenement holdings in Africa and has been exploring for uranium and copper, nickel and platinum-group elements.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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