Cannon Resources (ASX:CNR) recommends $45m takeover offer from Kinterra

• Cannon Resources (CNR) accepts a $45 million takeover bid from a subsidiary of Kinterra Battery Metals Mining Fund
• Kedalion Nickel has entered a bid implementation agreement with Cannon, under which it would acquire all shares in CNR at 45 cents each
• Cannon’s Directors have confirmed intentions to accept the offer and recommend shareholders do the same in the absence of a superior proposal
• The offer period will run from November 10 to December 21, during this time Kinterra has made a $1 million short term loan facility available to CNR
• At market close Cannon shares are 38.1 per cent higher at 43.5 cents

West Australian nickel exploration and development company Cannon Resources (CNR) has accepted a $45 million takeover bid from a subsidiary of Kinterra Battery Metals Mining Fund.

Kinterra is a private equity firm with a focus on developing critical minerals and downstream infrastructure necessary for the energy transition.

Its subsidiary, Kedalion Nickel, has entered a bid implementation agreement with Cannon, under which it will acquire all shares in CNR at 45 cents each.

The offer price is a 43 per cent premium to Cannon’s last closing price of 31.5 cents on October 28 and a 58 per cent premium to the 30-day volume weighted average price.

The takeover is subject to support from Cannon’s major shareholders and a 50.1 per cent minimum accepted condition.

Cannon’s Directors have confirmed intentions to accept the offer and recommend shareholders do the same in the absence of a superior proposal.

Kinterra holds 17.1 million CNR shares, representing 19.99 per cent of all shares on issue, due to shareholders entering into pre-bid acceptance agreements.

Further details of this arrangement will be provided in Kinterra’s substantial shareholder notice.

If successful, Cannon Resources Chairman Alex Passmore said the offer would create value for shareholders, whilst moving the asset to a company that can take Fisher East to the next stages of development.

“Fisher East is at an inflection point and this transaction removes the risks and equity dilution associated with the next phase of intensive project development work,” Mr Passmore said.

The offer period will run between November 10 to December 21.

To assist with funding requirements during this time, Kinterra has given Cannon access to a short term loan facility of up to $1 million.

Both Kinterra’s bidder’s statement and Cannon’s target’s statement will be dispatched to Cannon shareholders in early November.

At market close, Cannon shares were 38.1 per cent higher at 43.5 cents.