After completing its acquisition from Breakaway Resources and its wholly-owned subsidiary Scotia Nickel of the Scotia tenements in Western Australia, Minotaur Exploration has made a takeover offer for Breakaway.
Minotaur has lodged its Bidder’s Statement with ASX and ASIC in relation to its offer to acquire no less than 90% of the shares in Breakaway. Minotaur offers to exchange one Minotaur share for every 10 Breakaway shares. The offer will, if successful, enable Minotaur to move to compulsory acquisition of any outstanding shares not held as at that time.
Minotaur’s chairman Derek Carter says the Breakaway Board has publicly endorsed Minotaur’s offer and unanimously recommends all Breakaway shareholders accept, in the absence of a superior proposal being received.
“It is worthwhile noting that Breakaway’s largest shareholder, Norilsk Nickel Australia with 24.8% of Breakaway, has committed to accept within 5 business days after the commencement of the offer period, for 19.9% of its shareholding, in the absence of a superior proposal emerging. We believe Norilsk’s early acceptance provides a strong indication that our offer is compelling and attractive to all Breakaway shareholders.
“The directors of both companies agree that consolidating Breakaway’s exploration assets within the Minotaur Group will provide a wider pathway for value creation through systematic and well-funded exploration.
“Following the proposed acquisition of Breakaway, Minotaur intends to immediately roll-out an initial 12-month exploration campaign on Breakaway’s Leinster and Eloise tenements,” Derek Carter says.
The Scotia tenements, covering about 160sqkm, are about 65km north of Kalgoorlie. Aphrodite Gold may earn a joint venture beneficial interest of up to 80% in the gold rights and is obliged to keep all tenement expenditure requirements up to date.
Minotaur considers the Scotia tenements to be highly prospective for gold and nickel mineralization. Gold occurrences have been proven by Aphrodite’s recent joint venture exploration. Past nickel exploration by Breakaway and others established the presence of new targets around the historic Scotia Nickel mine and, 15km to the north at the Saints Nickel Target, the undeveloped St Patricks nickel deposit.