Diatreme Resources’ (ASX:DRX) unconditional takeover offer of Metallica Minerals (ASX:MLM) has been extended and is scheduled to close on Tuesday 6 August 2024.
Remaining Metallica shareholders are being encouraged by Diatreme to “accept now and not wait” in order to participate in the offer
Diatreme has increased its relevant interest in Metallica to 87.05% and the suitor intends to proceed with compulsory acquisition of any outstanding Metallica shares if it reaches a 90% relevant interest.
If it becomes entitled to proceed with compulsory acquisition following Diatreme’s Metallica takeover offer being extended, Metallica shareholders who have not accepted the offer before the closing date will be unable to claim their offer consideration until after the compulsory acquisition process is completed.
This is likely to be no earlier than six weeks after Diatreme gives the compulsory acquisition notice.
Diatreme’s Metallica takeover offer extended
Diatreme is an emerging Australian producer of mineral and silica sands based in Brisbane. Its key projects comprise the Northern Silica Project and Galalar Silica Sand Project in Far North Queensland, located next to the world’s biggest silica sand mine at Cape Flattery, near where Metallica’s flagship project sits.
In Western Australia’s Eucla Basin, Diatreme’s ‘shovel-ready’ Cyclone Zircon Project is considered one of a handful of major zircon-rich discoveries of the past decade. Diatreme also holds a 49% interest in the Clermont Copper-Gold Project located in central Queensland.
Diatreme has a farm-in agreement with Metallica, which already owns a 51% interest and has provided its intention to earn up to a 75% interest by meeting certain further expenditure obligations of an additional $1 million.
Global material solutions group Sibelco Asia Pacific is Diatreme’s development partner on its Queensland silica projects portfolio. Sibelco Asia Pacific has completed a two tranche investment of $35 million taking its total project interest to 26.8%, with the balance (73.2%) held by Diatreme. In addition, Sibelco Asia Pacific made a $13.97 million investment at the corporate level.
Write to Adam Orlando at Mining.com.au
Images: Metallica
