Chinese backed Perilya offers CAD$184 million for Globestar Mining
Australian base metals mining and exploration company Perilya (ASX: PEM) has entered into an all cash offer to acquire all outstanding GlobeStar Mining (TSX: GMI) shares, identifying what could be the beginning of consolidation in the small end mining sector as many commodities continue strong price gains.
Perilya has entered into a binding pre-bid agreement with GlobeStar, by way of a friendly takeover, with Perilya offering C$1.65 per share, valuing GlobeStar at approximately C$184 million, or A$186.1 million on a fully diluted basis.
GlobeStar last traded at C$1.27.
The major advantage for Perilya in the deal is that it gains immediate access to a low cost operating project producing copper, gold and silver with a seven year mine life, and potential to increase both mine life and production rate.
Perilya will then be operating two cash flow positive and profitable mines.
Already, Perilya has a potential "lock" on 48.8% of GlobeStar shares, entering into agreements with GlobeStar directors and shareholders unless there is a higher bid.
There is also a break fee of C$7.35m to be paid to Perilya if the acquisition does not go ahead based on certain terms.
Zhang Shuijian, chairman of Perilya, said, "The addition by Perilya of another profitable, cash accretive operation significantly de-risks Perilya's reliance on its Broken Hill operations and is in line with the company's strategic plan of pursuing growth through both internal and external opportunities as appropriate."
"Zhongjin Lingnan, Perilya's major shareholder, is fully supportive of the acquisition".
Perilya is 52% owned by Shenzhen Zhongjin Lingnan Nonfemet Co. Ltd, which is China's third largest zinc producer.
GlobeStar is a mining and exploration company headquartered in Toronto with primary assets including the low cost Cerro de Maimón copper-gold-silver project and an extensive portfolio of exploration tenements covering base metals and nickel in the Dominican Republic, and 60% ownership of the Moblan lithium development project in Quebec, Canada.
The Offer represents a premium of 29.9% based on the closing price of C$1.27 per GlobeStar share on the TSX on 6 October 2010, and a 44% premium to the 30 trading day volume weighted average on the TSX for the period ending 6 October 2010.
- Bauxite Resources公司收到大量持股通知
- ASF Group的联营公司将Dawson West热煤项目的资源储量提升至6.45亿公吨
- White Cliff Minerals公司于Aucu项目发现新的矿化带
- Bauxite Resources公司非执行董事卸任
- South Boulder Mines公司董事长购买市售股份
- Carbon Energy公司筹资500万澳元以推进天然气项目
- South Boulder Mines公司降低Colluli钾肥项目的运营开支和资本开支