2nd Jun 2023 10:48
(Alliance News) - Amur Minerals Corp on Friday noted Ascent Resources PLC's announcement of a possible takeover bid for Amur and said it would "consider" the terms on offer.
Amur's shares were down 15% at 0.20 pence each in London on Friday morning. Ascent shares were up 3.5% at 3.68py.
The Russia-focused nickel copper sulphide exploration company said the terms of Ascent's proposal were new to the board, and it will "consider" them. Amur asked its shareholders to take no action, warning there is no certainty that an offer will be made.
Amur said it had been "restricted in its ability" to advance discussions with potentially interested parties while in the process of selling its Kun-Manie nickel copper project in Russia. The sale was completed in March for USD35 million, or GBP27.9 million.
On Thursday, Ascent, said it wants to buy Amur Minerals in an all-share deal of one new Ascent share for every 21 Amur shares valued, at the time of the announcement, at 0.175 pence per share, plus a 1.8p dividend. Under the proposal, Amur shareholders would own 29% of the enlarged company, with Ascent shareholders owning the remaining 71%.
Ascent said it had been in "protracted discussions" with the board of Amur.
Ascent added that Amur could profit from its claim against the Slovenian government, after it submitted a request for arbitration against the country in August. This includes an updated preliminary damages assessment in excess of EUR500 million, after the closure of a "no win - no fee" style funding arrangement in May last year.
Ascent is a Latin America and Europe-focused energy and natural resources company.
By Sabrina Penty, Alliance News reporter
Comments and questions to [email protected]
Copyright 2023 Alliance News Ltd. All Rights Reserved.