07 MAY 2014www.miningweekly.com
MetroCoal ends Cape Alumina offer with majority stake
Edited by : AL CIRCLE
1 min read
ASX-listed MetroCoal’s takeover offer for fellow-listed Cape Alumina closed on Tuesday, with the company gaining a 57.22% shareholding in the takeover target.
MetroCoal launched its takeover of Cape Alumina in March, offering shareholders 0.6c a share in cash. The offer was accepted by some of Cape Alumina’s largest shareholders, including Resource Capital Fund III and Resource Capital Fund IV.
MetroCoal told its shareholders on Tuesday that the acquisition of a majority share in Cape Alumina provided the company with exposure to the bauxite market for a relatively small capital outlay.
“This acquisition also gives MetroCoal the opportunity to build a project pipeline based on bauxite assets in the near to medium term and coal assets in the longer term,” the company said.
Cape Alumina’s main focus is the development of its Bauxite Hills mine and port project, in Queensland.
A prefeasibility study has previously found that the Bauxite Hills mine could deliver five-million tonnes a year, over a life-of-mine of ten years. The study proposed that the Bauxite Hills mine would start production at 2.5-million tonnes a year of dry beneficiated bauxite, building to an output of five-million tonnes a year over a two-year period.
MetroCoal launched its takeover of Cape Alumina in March, offering shareholders 0.6c a share in cash. The offer was accepted by some of Cape Alumina’s largest shareholders, including Resource Capital Fund III and Resource Capital Fund IV.
MetroCoal told its shareholders on Tuesday that the acquisition of a majority share in Cape Alumina provided the company with exposure to the bauxite market for a relatively small capital outlay.
“This acquisition also gives MetroCoal the opportunity to build a project pipeline based on bauxite assets in the near to medium term and coal assets in the longer term,” the company said.
Cape Alumina’s main focus is the development of its Bauxite Hills mine and port project, in Queensland.
A prefeasibility study has previously found that the Bauxite Hills mine could deliver five-million tonnes a year, over a life-of-mine of ten years. The study proposed that the Bauxite Hills mine would start production at 2.5-million tonnes a year of dry beneficiated bauxite, building to an output of five-million tonnes a year over a two-year period.
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