Melior and Metallica point fingers as merger falls apart
PERTH (miningweekly.com) – ASX-listed Metallica Minerals has terminated proposed merger with TSXV-listed Melior Resources.
The two companies in September last year struck a binding merger agreement to create a diversified Queensland mining company, which will combine mineral sands and bauxite assets.
Under the terms of the agreement, Metallica would have acquire all of the issued and outstanding common shares of Melior in exchange for Metallica ordinary shares at an agreed exchange ratio of 20 Metallica shares for every one Melior share.
The proposed merger was expected to close at the end of December, however, Metallica said on Wednesday that the conduct of Melior, including breaches of representations, warranties and covenants in the arrangement agreement surrounding the company’s debt covenants, was a ‘significant contributing factor’ to the conditions precedent to the completion of the merger not being satisfied on time.
Metallica said that that it would evaluate potential recourse for damages caused by Melior’s breaches.
Melior for its part has told shareholders that the company’s right to terminate the agreement had arisen out of Metallica’s ‘failure to perform certain covenants and obligations’ required under the agreement, resulting in certain conditions precedent being incapable of being satisfied.
With the merger agreement now terminated, Melior said that it would continue to focus on the ramp-up of production at its Goondicum ilmenite and apatite project, in Queensland, and would seek its own listing on the ASX.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Design, Construction and Maintenance of Site Erected, Welded Bulk Storage Tanks for the Petrochemical, LNG, Ammonia and Sustainable fuel Sectors.
VISIT SHOWROOM
For over 15 years, Lilak Aluminium, a trusted leader in architectural extrusion supply, has delivered excellence to businesses like yours.
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
