Horizon Minerals has increased the proposal for Focus Minerals’ Coolgardie gold project in Western Australia to $55 million.
The offer follows Focus receiving a competing offer from Intermin Resources to the tune of $40 million in February this year.
Horizon had an opportunity to increase the offer given the exclusivity deed it signed with Focus earlier this year.
Focus has revealed the counter proposal by Horizon is “no less favourable” to shareholders than the competing proposal and therefore, the exclusivity deal has been updated to reflect the terms of the new proposal.
Horizon stated that the parties “will continue to use their reasonable endeavours to agree formal binding documentation in respect of the counter proposal.”
The $55 million proposal comprises a combination of $43 million in cash and $12 million worth of Horizon shares, payable to Focus in tranches.
The proposed transaction remains subject to the negotiation and entry into documentation and approvals.
Subsequently, Focus stated there was no assurance that the sale of Coolgardie and the Three Mile Hill processing plant would proceed.
The company added that it would update the market in accordance with its continuous disclosure obligations.