Ascent Resources has announced its intention to bid for the entire share capital of Amur Resources after ‘protracted’ discussions with the Amur board.
The announcement was made after Amur Minerals shares sank 88% to 0.225p as a result of trading ex-dividend due to the return of capital to shareholders following a disposal. Amur is paying shareholders a 1.8p special dividend after disposing of their Russia nickel-copper asset.
Ascent Resources are proposing to pay 1 Ascent share for every 21 Amur shares in issue. The deal would value Amur shares at 0.175p.
Taking into consideration the 1.8p dividend, the bid represents a 7.3% premium to the Amur closing price of 1.84p last night.
If the deal is agreed, Amur shareholders would own approximately 28.6% of the enlarged group, and Ascent shareholders would own approximately 71.4%.
Ascent included conditions to their proposal that Amur must have a minimum of $5m cash after paying the special dividend, and have no material liabilities.
Ascent says its vision is to combine Amur’s cash with its project pipeline in LATAM.
Ascent said Amur are yet to respond to their offer.