PERTH (miningweekly.com) – Takeover target Unity Mining on Monday announced that the terms of shareholder Diversified Minerals’ takeover offer for the company had changed.

In December last year, the junior gold company executed a scheme implementation agreement with Diversified Minerals, which had offered Unity shareholders 2.9c a share for their holding in the company.

The offer comprised 1c a share to be received through an equal capital reduction and 1.9c a share as scheme consideration for Diversified Minerals.

Under the revised terms, Diversified Minerals would increase the scheme consideration from 1.9c to 2.2c a share, while Unity shareholders would continue to receive a capital return of 1c a share.

The revised proposal represented a 10.3% increase in payments to be received by Unity shareholders, and a 60% premium over Unity’s share price on December 4, which was the last trading day prior to the original transaction.

“The Unity board welcomes the increase in the total cash payments to be received by shareholders under the revised transaction, and we look forward to putting these resolutions to shareholders for their consideration,” said Unity chairperson Clive Jones.

In addition, the two companies had also agreed to a separate transaction in the event that the revised transaction did not proceed.

Under this separate transaction, Unity would sell its interest in the Henty gold mine, in Tasmania, for A$7.1-million, subject to the approval of shareholders.

“In the event that the revised transaction does not proceed, the Unity board is pleased that shareholders will have the opportunity to determine to sell Unity’s remaining interest in the Henty mine to Diversified Minerals at a price which is above the upper end of the independent expert valuation range previously provided to shareholders,” Jones added.

Unity shareholders were expected to meet in late May to vote on the revised transaction, and should this fail, to approve the Henty transaction.

The Henty mine produced 12 502 oz of gold during the six months ended December.