As part of an unfolding takeover offer of Metallica Minerals (ASX:MLM), suitor Diatreme Resources (ASX:DRX) has received correspondence from the target alleging a breach of a pre-existing agreement between both parties.
Metallica says if the proposed takeover bid were to proceed without the consent of Metallica, Diatreme will be in breach of said agreement.
Diatreme, which has a $85.78 million market capitalisation, has written to Metallica and has urgently requested, to the extent that is required, the consent that Metallica says is necessary for it to proceed with the proposed takeover bid.
According to the suitor it is considering the correspondence more fully and will make a further announcement to the market once able to do so.
On 16 January 2024, Mining.com.au reported that Diatreme made a conditional intention to make an all-script takeover bid for Metallica under the advisement of GRE Capital, KPMG Corporate Finance, and by McCullough Robertson as legal counsel.
If successful, the offer would create an ASX-listed silica company with a pro-forma market capitalisation of about $110 million and a ‘significant’ resource base.
Write to Adam Drought at Mining.com.au
Images: Metallica
