Metalicity's offer for Nex inches along
PERTH (miningweekly.com) – Junior Metalicity’s interest in its joint venture (JV) partner and reluctant takeover target Nex Metals Exploration has now reached 20.12%, making it the largest shareholder in the ASX-listed Nex Metals.
Metalicity’s offer to Nex Metals shareholders is 4.81 Metalicity ordinary shares for every Nex Metals share on issue, valuing Nex Metals equity at A$12.8-million based on Metalicity’s closing share price on September 13.
Under Metalicity’s offer, Nex Metals shareholders would own 37.5% of the enlarged entity that would hold a 100% interest in the Kookynie and Yundamindra gold projects, with improved access to capital, and an enhanced balance sheet position.
While Nex Metals has previously urged shareholders to reject the offer owing to a "lack of information", the takeover target has been halted by an interim order from the Australian Takeovers Panel from sending out a target statement to shareholders in respect of the off-market script offer from Metalicity until it could make a determination on an application brought by Metalicity in relation to the affairs of Nex Metals.
Meanwhile, Nex Metals has lodged a writ in the Supreme Court of Western Australia against Metalicity and its subsidiary Kym Mining, questioning Kym’s Stage 1 expenditure into a 2019 farm-in agreement over the Kookynie and Yundamindra gold projects.
Metalicity has reportedly earned a 51% controlling interest in the Kookynie and Yundamindra gold projects after successfully completing a A$5-million exploration programme, and the projects are now under the direct operational control of Metalicity.
However, Nex was questioning the amount spent on the project area, and was seeking a declaration from the court that Kym has not acquired a 51% interest in the tenements.
Metalicity has rejected the assertion that it has not met the Stage 1 earn-in requirements under the farm-in and JV agreement.
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