Independence Group (IGO) has terminated its takeover offer for Panoramic Resources on the basis of a breach of conditions.
IGO had previously extended its takeover offer to Panoramic to January 17 but will now let the offer lapse.
The acquiring company has set out a number of conditions for the takeover deal to proceed to confirm the status of the operating performance at Savannah.
These conditions included the appointment of a technical expert at Panoramic’s own cost as well as providing due diligence access to IGO.
Panoramic, however, undermined IGO’s offer and advised shareholders to take no action, labelling the offer as unsolicited and highly conditional.
The former target company continues to provide due diligence access to third parties and remains in discussion around the potential for a transaction proposal.
IGO has pledged to grant all Panoramic shareholders who have accepted the offer a right to withdraw their acceptance.
“IGO recognises that under the customary terms of IGO’s offer, Panoramic shareholders who have accepted the offer would be unable to trade their Panoramic shares until after the offer has lapsed on 17 January 2020,” IGO managing director Peter Bradford said.
“To alleviate the potential disadvantages of this for accepting Panoramic shareholders, IGO has determined, in line with its values and standards, to grant Panoramic shareholders who have accepted the offer a right to withdraw their acceptances prior to the offer lapsing.
“This will provide accepting Panoramic shareholders the opportunity to freely deal with their Panoramic shares earlier than they would be able to in the ordinary course.”
Panoramic is also set to appoint an underground mining contractor this month in an attempt to address the underground equipment reliability issue at the Savannah nickel project in Western Australia.
While the tender process is in progress, Panoramic engaged Macmahon subsidiary GBF Underground Mining on a short-term contract last month to accelerate development in the Savannah North headings.
GBF commenced work on December 28 2019 and has delivered positive initial results, according to Panoramic.
The company reported 60 metres of orebody strike drive development has been completed by December, yielding around 6400 tonnes of development ore.
Panoramic’s next shipment from Savannah is due to depart Wyndham, Western Australia on January 11, with around 5100 dry metric tonnes of concentrate on board.
The company shipped 14,866 dry metric tonnes of concentrate containing 1018 tonnes of nickel, 668 tonnes of copper and 53 tonnes of cobalt for the December quarter last year.