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Diatreme extends takeover offer period for Metallica

Diatreme Resources (ASX:DRX) has extended the offer period for its off-market takeover bid for Metallica Minerals (ASX:MLM) to 3 June 2024. 

Following acceptance from two of Metallica’s largest shareholders and other shareholders, Diatreme has a relevant interest in 44.26% of Metallica shares. 

Diatreme confirms that the offer consideration of 1.3319 new shares for each Metallica shares is the “best and final” and will not be increased, in the absence of an alternative or competing proposal. 

The company adds acceptances must be received by no later than 7pm AEST on 3 June, unless the offer is extended or withdrawn. 

On 13 May, Metallica announced it continues to recommend shareholders reject the takeover bid put forward by Diatreme. 

The company issued a response to Diatreme’s third supplementary bidder’s statement, which criticised an independent expert report that accompanied Metallica’s target statement. 

If the takeover goes ahead, both companies will create one silica sand company with a pro-forma market capitalisation of about $110 million and a substantial resource base. 

Diatreme Resources is an emerging Australian producer of mineral and silica sands based in Brisbane, Queensland. 

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Images: Metallica Minerals 
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Written By Aaliyah Rogan
Relocated from the East Coast in New Zealand to Queensland Australia, Aaliyah is a fervent journalist who has a passion for storytelling. When Aaliyah isn’t writing stories, she is either spending time with friends and family or down at the beach.