- Metalicity (MCT) issues the first phase of 282.8 million consideration shares to Nex Metals Exploration (NME) shareholders
- As a result, Metalicity’s interest in Nex Metals has increased to 28.9 per cent, making it the largest shareholder
- On September 14, Metalicity unveiled an off-market all-scrip takeover bid for all of the fully-paid ordinary shares in joint venture partner Nex Metals
- This proposal was to rationalise the ownership of the Kookynie and Yundamindra projects under a single listed entity
- Metalicity is up 11.1 per cent on the market with shares trading at one cent
Metalicity (MCT) has issued the first phase of 282.8 million consideration shares to Nex Metals Exploration (NME) shareholders.
This offer was unconditional, resulting in Nex Metals shareholders receiving 4.81 MCT shares for every NME share held.
As a result, Metalicity’s interest in Nex Metals has increased to 28.9 per cent, making it the largest shareholder.
On September 14, Metalicity unveiled a proposal for an off-market all-scrip takeover of all the fully-paid ordinary shares in joint venture partner Nex Metals.
This proposal was to rationalise the ownership of the Kookynie and Yundamindra projects under a single listed entity.
The proposal valued Nex Metals at roughly $12.8 million.
Metalicity Chairman Andrew Daley commented on the proposal when it was announced.
“The combination of Metalicity and Nex Metals makes logical sense. The primary asset of both companies is the highly attractive Kookynie and Yundamindra gold projects,” Mr Daley said.
“Rationalising the ownership of the projects into a single listed entity creates a number of compelling benefits for both groups of shareholders, and allows us to better realise and maximise the value of the projects for all shareholders.
“We envisage the combined entity would be able to accelerate the development of the projects through better access to capital, reduced costs and greater efficiencies from removing the current joint venture structure.”
Metalicity is continuing to encourage shareholders to accept the offer to allow work to move forward as quickly as possible at the Kookynie and Yundamindra gold projects.
Metalicity was up 11.1 per cent on the market with shares trading at 1 cent as of 3:16 pm AEDT.