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Metallica urges shareholders ‘take no action’ as Diatreme gains minimum acceptance

Metallica Minerals (ASX:MLM) continues to recommend its shareholders take no action after Diatreme Resources (ASX:DRX) achieved the minimum acceptance condition of its takeover bid. 

The board plans to release a supplementary target’s statement in due course. 

Diatreme also announced yesterday that it is seeking orders from the Takeovers Panel that Metallica disclose further information. 

Diatreme wants Metallica to provide information around the status of discussions regarding competing proposals, as well as waive the standstill provision in the October 2023 confidentiality deed, no later than 30 May 2024. 

Diatreme says that would satisfy one of the offer conditions, namely that the standstill be waived or Metallica confirm that standstill will not prevent Diatreme acquiring shares in Metallica. 

On 30 October 2023, Metallica and Diatreme entered into a confidentiality deed, including a mutual standstill for the two-year term of the deed. 

The deed states that Diatreme agrees not to acquire, purchase, or sell or agree to acquire, purchase or sell any securities in Metallica without the company’s prior written consent. 

Following its submission to the Takeovers Panel, Diatreme will extend the offer period for seven days to 10 June 2024, subject to no further extensions. 

As previously reported, Diatreme increased its stake in Metallica to 56.01%, satisfying the minimum acceptance condition of the off-market bid.

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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.