Metro Mining’s offer to acquire Gulf Alumina confirmed superior to Molly Mines

<p>Metro Mining Ltd has confirmed through a press release that the board of Gulf Alumina Limited has announced Metro&rsquo;s offer to the acquire all of the shares of Gulf to be superior to the proposal from Moly Mines Ltd.<br /><br />It is to be noted that Metro Mining currently owns a 39.3% interest in Gulf Alumina and owns the full subsidiary of the Bauxite Hills project adjoining Gulf&rsquo;s bauxite project at Skardon River, Cape York.&nbsp; As seen by Metro their offer projects a logical opportunity to do a business of over $200 million in synergies from the combined projects of Metro and Gulf.&nbsp; This projection is based on an estimate by Grant Thornton and Xstract Mining Consultants in Gulf Alumina&rsquo;s independent expert report from May 2016.<br /><br /><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/metro-mining-car-and-plane.-757.jpg" alt="News" width="448" height="277" /><br /><br />The collaboration of Metro and Gulf will create a leading independent Australian bauxite company in&nbsp; Cape York. The company is expected to deliver value for all stakeholders, including shareholders, traditional owners, the local community and state and federal governments.<br /><br />Metro&rsquo;s offer is subject only to Metro&rsquo;s relevant interest in Gulf shares exceeding 51% during the offer period. Metro&rsquo;s offer is expected to close on 5 December 2016 on the acceptance of Gulf shareholders, unless extended further.<br /><br />{googleAdsense}<br /><br />Metro Mining observes that Moly&rsquo;s proposal is inferior in value and it does not provide any synergies like Metro. The offer is conditional and requires approval from FIRB and ASX (among others). In fact, a number of pre-existing conditions are beyond Moly&rsquo;s control and are not easy to satisfy.<br /><br />According to the offer implementation agreement between Gulf and Moly, Moly still has time until Tuesday, 8 November 2016 to match Metro&rsquo;s Offer before the Gulf board can recommend the superiority of Metro&rsquo;s offer to Gulf shareholders.</p>