Exploring all options
Takoradi has hit the jackpot with a bid for its subsidiary sending shares skyward but remains coy about endorsing the offer.
The Christmas break is over and mineral exploration company Takoradi has released a statement on an updated bid it received for its unlisted subsidiary, Hampton Mining.
The updated offer, first made by rival explorer Metminco on November 3, was lodged on Christmas Eve and is for 2.5 Metminco shares for each share in Hampton.
As per Metminco's November announcement, the offer equates to a value of around 20 cents per Metminco share and 50 cents per Hampton share as well as 1.875 Metminco shares for each March 30 2009 Hampton option exercisable at 12.5 cents and 0.9 Metminco shares for each April 28 2009 option exercisable at 32 cents.
If the takeover is successful the combined Hampton-Metminco group would be renamed Hampton Mining Ltd and be listed on the ASX. Takoradi currently owns 27.5 per cent of Hampton and would own 25 per cent of the listed entity.
No decision has yet been made by Takoradi's board, but the offer, valid until February 24, is conditional upon Metminco obtaining acceptances for at least 51 per cent of Hampton's issued capital. Metminco's managing director Keith Weston told Business Spectator that he believes an announcement will be made by Takoradi on Friday. Takoradi rose 34 per cent in trade on Tuesday while Metminco eased 5 per cent.
Ballarat-based Metminco, which has projects in Western Australia, King River in the Northern Territory and near Lake Eyre in South Australia, has $1.6 million cash in the bank, against Hampton's reserves of $14.5 million cash. Hampton has exploration and pre-development projects in Chile and Peru covering copper, zinc, gold, silver, molybdenum and iron ore.
The offer has come following an earlier attempt to list Hampton on the ASX. The initial public offer was scheduled to close on October 24 last year, but was withdrawn due to market conditions.
The IPO, managed by Patersons Securities' team in Melbourne, was for an issue of 5 million shares at 35 cents, raising $1.75 million. Patersons' mandate included a $80,000 marketing fee, a 2.5 per cent management fee and a distribution fee of 4 per cent. Hampton were also being advised by Gadens Lawyers in Sydney and Baker & McKenzie in Chile.
Metminco is being advised by Macpherson Kelley Lawyers and an internal team lead by chairman John Fillmore. Major shareholder Bruce MacFarlane of private investment group Marathon Crest is also lending a hand, says Metminco's Weston.
The updated offer, first made by rival explorer Metminco on November 3, was lodged on Christmas Eve and is for 2.5 Metminco shares for each share in Hampton.
As per Metminco's November announcement, the offer equates to a value of around 20 cents per Metminco share and 50 cents per Hampton share as well as 1.875 Metminco shares for each March 30 2009 Hampton option exercisable at 12.5 cents and 0.9 Metminco shares for each April 28 2009 option exercisable at 32 cents.
If the takeover is successful the combined Hampton-Metminco group would be renamed Hampton Mining Ltd and be listed on the ASX. Takoradi currently owns 27.5 per cent of Hampton and would own 25 per cent of the listed entity.
No decision has yet been made by Takoradi's board, but the offer, valid until February 24, is conditional upon Metminco obtaining acceptances for at least 51 per cent of Hampton's issued capital. Metminco's managing director Keith Weston told Business Spectator that he believes an announcement will be made by Takoradi on Friday. Takoradi rose 34 per cent in trade on Tuesday while Metminco eased 5 per cent.
Ballarat-based Metminco, which has projects in Western Australia, King River in the Northern Territory and near Lake Eyre in South Australia, has $1.6 million cash in the bank, against Hampton's reserves of $14.5 million cash. Hampton has exploration and pre-development projects in Chile and Peru covering copper, zinc, gold, silver, molybdenum and iron ore.
The offer has come following an earlier attempt to list Hampton on the ASX. The initial public offer was scheduled to close on October 24 last year, but was withdrawn due to market conditions.
The IPO, managed by Patersons Securities' team in Melbourne, was for an issue of 5 million shares at 35 cents, raising $1.75 million. Patersons' mandate included a $80,000 marketing fee, a 2.5 per cent management fee and a distribution fee of 4 per cent. Hampton were also being advised by Gadens Lawyers in Sydney and Baker & McKenzie in Chile.
Metminco is being advised by Macpherson Kelley Lawyers and an internal team lead by chairman John Fillmore. Major shareholder Bruce MacFarlane of private investment group Marathon Crest is also lending a hand, says Metminco's Weston.
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