Helix Resources (ASX:HLX) says there are negative implications to Acta Investment Group’s proportional off-market takeover offer for 25% of the company’s shares at $0.005 per share.
The $14.68 million market capitalised company says the offer involves control without a premium. Acta has proposed that the majority of the board directors would be nominees from Acta or its associates.
If the takeover were to go ahead, Helix says that would give Acta “effective control” of the company with a relatively small shareholding without paying the standard control premium that shareholders would anticipate.
Helix adds that the offer includes “restrictive conditions” including limiting the company from making material expenditure above $50,000, which conflicts with the company’s current exploration objectives and drilling programs.
“These conditions risk hampering the company’s ability to operate effectively and to continue the copper-gold exploration projects we have underway in the Cobar region,” Helix says.
Other implications flagged by Helix include not having a long-term commitment to the company, as well as limited or no information on the proposed directors.
Helix continues to advise shareholders to take no action in response to the offer.
As this news service previously reported, the company believes it is potentially “one drill hit away” from a new discovery underpinned by the recent exploration at Collerina, Muriel Tank, and Bijoux.
Helix is aiming to define drilling targets at the Muriel Tank Gold Project via extensional and infill auger drilling that is currently in progress. Assays from the program are expected in November 2024.
A follow-up reverse circulation drilling program is also being prepared as mapping and rock chip sampling continues.
Helix Resources is a copper-gold explorer focused on making new discoveries in central New South Wales.
Write to Aaliyah Rogan at Mining.com.au
Images: Helix Resources
