AIC Mines (ASX:A1M) will proceed with the compulsory acquisition of Demetallica (ASX:DRM) following the expiration of the objection period set out in the compulsory acquisition notice with the ASX and ASIC on 6 December.
In November 2022, both companies announced they had executed a bid implementation deed regarding AIC Mines’ off-market takeover offer for Demetallica on a recommended basis.
Under the terms of the agreement, AIC Mines in November agreed to improve its offer consideration to 1 AIC Mines share for every 1.3 Demetallica shares held. At the time, the board of Demetallica agreed to unanimously recommend the improved offer.
AIC Mines will progress with the compulsory acquisition, and the target is set to be delisted from the ASX on or about 23 January this year
Today (9 January), Demetallica reports AIC Mines will progress with the compulsory acquisition, and the target is set to be delisted from the ASX on or about 23 January this year.
As previously announced, the acquisition is considered a logical combination of AIC Mines’ Eloise mine and processing facility with Demetallica’s Jericho copper deposit which are located only 4km from each other.
It has been reported as the quickest and most efficient means of developing, mining, and processing the Jericho deposit and potentially other deposits within Demetallica’s broader Chimera project.
The tie-up also is reported to create a stronger company with enhanced scale, market relevance and trading liquidity.
Write to Adam Orlando at Mining.com.au
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