Horizon Minerals has launched a counter proposal to purchase the Coolgardie gold project in Western Australia from Focus Minerals.
The counter proposal entails a total consideration of $52 million in cash, which will be payable to Focus over a 12-month period.
Horizon had previously offered $55 million for the Coolgardie project, comprising $43 million in cash and $12 million in Horizon shares, and would be payable to Focus over 3.5 years.
The company made this counter proposal as Focus was determined to pursue one of the unsolicited offers from third parties.
It was considered “the most attractive and superior to the Horizon offer,” according to a media statement.
Focus’ board has now decided that Horizon’s counter proposal was “no less favourable” to its shareholders than the competing proposals.
The two parties will now advance the proposed transaction, subject to the negotiation of a formal binding documentation and the obtaining of necessary approvals.
“Accordingly, there is no assurance that the sale of the Coolgardie gold project, which includes the Three Mile Hill processing plant, will proceed,” Focus said in a media statement.
Focus has previously knocked back an offer from Hanking Australia for its Coolgardie project, which was valued between $56 million and $65 million in cash.
Intermin Resources had also offered Focus $40 million for the site.
Coolgardie comprises around 235 square kilometres of mining and exploration tenements, and a gold processing plant with a processing capacity of 1.2 million tonnes of ore a year.
It was put on care and maintenance in August 2013.
Coolgardie still holds around 2.1 million ounces of gold in reserves, with both mineable open pit and underground deposits.