MetroCoal launches takeover bid for Cape Alumina

Just months after cancelling a planned merger, MetroCoal has made an on-market bid for resource company Cape Alumina.

MetroCoal, which owns a 6.87 per cent stake in Cape, is offering 0.6 cents a share to take over the company.

Plans to merge the two companies were cancelled in November after the Queensland Government banned mining over the Steve Irwin Wildlife Reserve and the Bertiehaugh Cattle Station.

This meant Cape’s flagship Pisolite Hills project was effectively banned from going ahead also, and the company walked away from the deal.

Cape has since shifted its focus to the development of its Bauxite Hills mine and port project and has also been petitioning to reverse the government’s decision.

MetroCoal said that by acquiring Cape, the company could expose its shareholders to the diversified bulk commodities of bauxite and thermal coal, for a small capital outlay.

It said on gaining control of Cape shares, the company would continue to engage with the government to ensure that the Bauxite Hills project proceeded.

It also said would resubmit plans to develop the Aurukun bauxite deposit and look to accelerate the development of Cape’s bauxite projects.

Cape chairperson, George Lloyd, said the company was considering the terms of the takeover bid and would advise shareholders on a course of action as soon as an assessment was completed.

“At this stage, we advise shareholders to take no action.”

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