Helix Resources (ASX:HLX) believes the company is potentially “one drill hit away” from a new discovery to “create excitement and value” in a clear strategy and process for its copper and gold assets.
That is the message Chair Mike Rosenstreich is sending ahead of the $14.68 million market capitalisation company’s AGM on 19 November.
In an update to the Australian Securities Exchange (ASX), Rosenstreich details how the FY24 has been pivotal for Helix as it continues to unlock the potential of its large prospective copper-gold ground position in the Cobar mining region of New South Wales.
“We have achieved many successes and made significant progress toward new copper and gold discoveries,” says Rosenstreich.
The company has already flagged more opportunities to make further gold discoveries at the Muriel Tank Gold Project in New South Wales, with new rock chip and mapping results, as reported by Mining.com.au.
The company is aiming to define drilling targets at the project via extensional and infill auger drilling that is currently in progress. Assays from this program are expected in November 2024.
Helix is also preparing for a follow-up reverse circulation drilling program, while mapping and rock chip sampling continues.
In his address to shareholders, Rosenstreich also notes the current corporate activity, namely the intention of privately held Australian investment firm Acta Investment Group to make an all-cash, proportional takeover bid for 25% of Helix that is to be presented to shareholders by 30 October for consideration.
“The existing board has a clear strategy and process for new copper and gold discoveries and seeks your participation and support at the forthcoming AGM, to maintain the current board and reaffirms its earlier call to take no action’ in regard to the proposed proportional takeover bid pending further information to be supplied,” he says.
Last month, Helix appointed advisors to assist it with the partial takeover offer from Acta and its associate Nuevo Royalty.
The junior explorer has appointed Hamilton Locke as legal advisors, New Holland Capital as corporate advisors and Chapter One Advisors as its investor and public relations advisors, as reported.
Acta is offering shareholders $0.005 cash per share, reduced by any dividends or distributions declared, for 25% of the Helix shares Acta and Nuevo do not currently own.
The suitor now has three director nominations to the Helix board to be decided at the AGM – Michael Povey, Kevin Lynn, and David Scoggin.
Helix’s view is that the nominations are provided in connection with the proposed bid, given that one of the conditions to the offer is that the majority of directors on the board are nominees of Acta or its associates.
Rosenstreich notes Helix considers this is an attempt to obtain effective control of the company’s board without obtaining a controlling stake in the company or paying a control premium to shareholders.
No background to the nominations nor any profile or other information has been shared by Acta outlining the experience or skills that Povey, Lynn or Scoggin might contribute, he adds.
“If these three new directors are elected and Emmanuel Correia is not re-appointed, the board will comprise a total of five members but Acta, the bidder for Helix, would hold a majority of the board positions and control the company with only a current shareholding of 16%,” Rosenstreich says.
“Even if the proposed bid is successful, Acta would have already obtained control of Helix despite their shareholding being well less than the typical 50.1% ‘control’ level. This proposed bid is unsolicited and highly conditional in nature.
“The conditions are onerous and include, for example, a restriction on Helix or its subsidiaries committing to any expenditure of more than $50,000. This condition is inconsistent with the planned objectives and drill programs of the company which are in progress and were announced prior to the proposed bid.
“It is likely other unreasonably restrictive conditions will be breached through no fault of Helix simply by conducting our business in the ordinary course. This uncertainty has put a halt on several advanced transactions the company was undertaking, which the board believes had the potential to create meaningful value to shareholders.”
Write to Adam Orlando at Mining.com.au
Images: Helix Resources
