Loyal Metals (ASX:LLM) has entered a scheme implementation deed to be acquired by PT Bumi Resources or a wholly owned subsidiary for a total consideration of around $79.1 million on an in-the-money equity value basis.
Shareholders of Loyal will receive a cash consideration of $0.45 per share, representing a 40.6% premium to the company’s last closing price of $0.32 per share on 24 April and a 49.6% premium to the 10-day volume weighted average price.
Founder and Chairman Peretz Schapiro says the company’s mission has always been to deliver value to shareholders since listing in 2021.
“Through the many ups and downs along the journey, we have always had this mission at the forefront of our minds and are glad to have delivered for our loyal shareholders,” Schapiro says.
“We are tremendously grateful to our shareholders for sticking with us and supporting us through our journey.
“A special thank you to the entire Loyal team in getting us to this point, and in particular to our Managing Director Mr Adam Ritchie, who has poured his heart and soul into the company over the last four years.
“On behalf of the board, I unanimously recommend that shareholders vote in favour of the scheme.”
Loyal directors are in support of the scheme and recommend shareholders to vote in favour of the scheme.
Bumi will use existing cash reserves and available financing facilities to fund the transaction.
Shareholders will meet to vote on the scheme implementation deed, expected to take place on the week of 3 August 2026, with the agreement required to be approved by at least 75% of holders to go through.
Implementation of the scheme is expected to occur shortly after the meeting.
Performance rights and performance shares will be converted into shares by the record date for the scheme.
Each in-the-money option will be exercised or cancelled, and each out-the-money option will have lapsed or been cancelled, terminated, or ceased to be on issue for the scheme to progress.
The scheme implementation deed is also subject to the completion of the Highway Project acquisition, along with customary and other conditions.
As reported by Mining.com.au earlier this month, Loyal exercised its option to wholly acquire the Highway Reward Copper-Gold Mine and the Big Magpie Project, both located in Queensland.
The title of the project is expected to be transferred in the second half of 2026.
The company completed the exploration and due diligence activities required for the option agreement, providing an advanced technical understanding of the Highway Reward mineral system.
Loyal Metals is an exploration company with a portfolio of projects in North America and Australia.
Write to Maddison Elliott at Mining.com.au
Images: Loyal Metals
