MetroCoal offers to bid for bauxite explorer Cape Alumina in Queensland
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MetroCoal has made an uninvited offer to take over their fellow exploration company in Queensland Cape Alumina at $0.06 per share.
The board of Cape Alumina has advised the shareholders not to take any action.
MetroCoal said they want to acquire Cape Alumina with the aim to expose its shareholders to bulk commodities of thermal coal and bauxite for small capital outlay.
MetroCoal and Cape Alumina had plans to merge last year in the month of November; however both the parties agreed to not make any move. This was due to an announcement on Nov 20th by the Queensland Government which was thought to have a material impact on the feasibility of Cape Alumina's flagship Pisolite Hills bauxite project.
Cape Alumina also shifted its focus subsequently in developing Bauxite Hills mine & port project. According to MetroCoal, they want to gain control of the shares of Cape Alumina and then continue to be in touch with the Queensland government in order to ensure the work Bauxite hills project continued.
MetroCoal would make use of its surplus cash for funding the bauxite projects in Cape Alumina, the Bauxite Hills project in particular, with an aim to commercial production, and supporting the optimising opportunities of the company with third parties in exploration as well as development sector.
George Lloyd, Cape Alumina chairperson told shareholders the company was considering the terms of on-market takeover bid. They would advise shareholders how to proceed after the assignment gets over.
