Metro Mining Ltd has announced its intention to make an offer to buy out all of the shares of Gulf Alumina Limited including those which it does not already own. The Board of Directors of the mineral company said that it considers the offer is far better than oly Mines Ltd's highly conditional offer for Gulf.
Currently, Metro has a 39.3 per cent stake in Gulf and owns the Bauxite Hills project located in the adjoining areas of Gulf’s bauxite project at Skardon River, Cape York.
A media release by Metro says the company considers that its offer 'provides the logical opportunity to unlock over $200 million in synergies from combining Metro’s and Gulf’s complementary projects, as estimated by Grant Thornton and Xstract Mining Consultants in Gulf’s independent expert report dated 13 May 2016.'
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Under Metro’s offer, shareholders of Gulf may elect to receive either:
• Cash of $0.60 for each Gulf share they own; or
• Cash and shares alternative of $0.50 cash plus 1 share in Metro for each Gulf share they own.
Metro Mining's offer is subject only to the company's relevant interest in the ordinary shares of Gulf exceeding 51 per cent during the offer period.
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