Carabella Resources’ directors recommend China Kingho Energy Group takeover offer
Carabella Resources (ASX: CLR) has recommended that shareholders accept the $0.455 per
share cash takeover offer from private Chinese mining and energy company
China Kingho Energy Group.
The offer had represented a 128% premium over Carabella’s last traded price of $0.20 on Tuesday, 3 December 2013.
Carabella’s
directors said the offer provided shareholders with greater certainty
relative to the alternative of waiting for the price of Carabella Shares
to reflect the potential value of its projects being developed and
reaching full production.
The recommendation is subject to Kingho
receiving all remaining Chinese regulatory approvals and the absence of
a superior proposal.
Kingho’s wholly-owned subsidiary Wealth Mining currently holds 11.06% of Carabella’s shares on issue.
The
acquisition of Carabella will give Kingho an Australian headquarters
for its global exploration and development businesses outside of China.
Carabella
had recently said it is engaged with a number of parties interested in
funding the Bluff PCI coal project in Queensland.
Detailed mine
planning and design, contractor selection, logistics and marketing
studies for the Feasibility Study are expected to be completed by the
end of calendar year 2013.
The company has also progressed its Grosvenor West Project into feasibility with significant improvements in the Project costs.
