28 MARCH 2014www.proactiveinvestors.com.au
Metrocoal takeover of Cape Alumina gains steam
Edited by : AL CIRCLE
1 min read
MetroCoal has acquired a strategic 46.04% interest in Cape Alumina through the purchase of 95,059,489 shares priced at $0.006 each under the former’s takeover offer.
The two companies had previously shelved a proposed merger in November last year.
MetroCoal’s unconditional cash offer is targeted at diversifying its asset base and risk profile to provide it with both a stronger near term (bauxite) and long term (coal) project pipeline.
On gaining control of Cape Alumina, the company plans to use its surplus cash to fund Cape’s bauxite projects and in particular the Bauxite Hills project in Western Australia during a period of strong global bauxite markets.
It had $7.48 million in cash as of the end of 31 December 2013.
The two companies had previously shelved a proposed merger in November last year.
MetroCoal’s unconditional cash offer is targeted at diversifying its asset base and risk profile to provide it with both a stronger near term (bauxite) and long term (coal) project pipeline.
On gaining control of Cape Alumina, the company plans to use its surplus cash to fund Cape’s bauxite projects and in particular the Bauxite Hills project in Western Australia during a period of strong global bauxite markets.
It had $7.48 million in cash as of the end of 31 December 2013.
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