Metallica Minerals (ASX:MLM) is advising shareholders to take no action regarding Diatreme Resources’ (ASX:DRX) all-scrip takeover bid, as reported by Mining.com.au last week.
Metallica, which has a $19.19 million market capitalisation, anticipates it will be a number of weeks before the offer can be made to Metallica shareholders, and is taking this opportunity to evaluate the disclosure provided by suitor Diatreme.
The company says it will also engage with key stakeholders and other parties that have expressed interest in Metallica’s Cape Flattery Silica Sand Project in North Queensland.
Metallica’s share price rose 7.692% to $0.028 as of 12:20pm AEST today (19 February 2024).
On 16 February 2024, Diatreme made a conditional intention to make an all-scrip takeover bid for Metallica.
Global material solutions company Sibelco Asia Pacific, which is a ‘significant’ shareholder in both suitor and target, has advised of its intention to support the offer, according to Diatreme’s announcement on Friday.
If successful, the offer would create an ASX-listed silica company with a pro-farma market capitalisation of about $110 million and a ‘significant’ mineral resource base.
Diatreme is being advised by GRE Capital, KPMG Corporate Finance, and by McCullough Robertson as legal counsel.
Metallica Minerals is focused on developing its Cape Flattery Project, adjacent to the Cape Flattery Silica Sand mining and shipping operation owned by Mitsubishi Corporation, in North Queensland.
Diatreme Resources is an explorer and miner which specialises in advanced mineral sands and silica sand projects.
Write to Adam Drought at Mining.com.au
Images: Metallica Minerals
