PERTH (miningweekly.com) – Diversified metals miner Independence Group has launched a A$20.5-million offmarket takeover offer for ASX-listed Windward Resources, which controls exploration tenements near its Nova project, in Western Australia.

The offer, which is unanimously supported by the Windward board, consists of 19c a share in cash for all Windward shares held. The offer represents a 46% premium to Windward’s last closing price on September 16 and a 60% premium to the company’s five-day volume weighted average share price.

Windward holds a number of exploration tenements within the Fraser Range, covering a total area of 1 700 km². A portion of these tenements is contiguous with the Nova mining lease, where Independence is developing the Nova nickel/copper/cobalt project.

Independence MD and CEO Peter Bradford told shareholders on Wednesday that the company was committed to a strategy of larger landholding within the Fraser Range, and being a leader in the understanding of the Fraser Range geology.

“A portion of Windward’s tenement package is contiguous with the Nova mining lease, and thus there is a clear rationale for this bolt-on transaction.

“The offer provides Windward shareholders with the certainty of cash at an attractive premium, removing the risk and uncertainty of exploration, and the potential for further capital raisings by Windward in the future.”

Windward’s board has unanimously recommended that shareholders accept the offer, in the absence of a superior proposal, with the company’s major shareholder, prospector Mark Creasy, also backing the offer.

The offer is subject to a number of conditions, including Windward’s funding agreement with Eastern Goldfields not proceeding, a minimum 50.1% acceptance, and regulatory approvals.

Eastern Goldfields in September announced plans to acquire a 14.3% stake in Windward in a deal valued at A$2.1-million. Subject to Windward shareholder approval, Eastern Goldfields will take up 18-million shares in Windward, priced at 12c each. Eastern Goldfields will also be issued with a further 18-million unlisted options, in two tranches, exerciseable at premiums of 125% and 166% respectively, to the subscription price.