Panoramic Resources has announced its intention to acquire Magma Metals.
It is offering to acquire Magma for approximately $36 million.
As of this morning Magma Metals had a market cap of $21.39 million.
The off market takeover bid will see Panoramic offer two shares for every 17 Magma shares held, implying a value of approximately 14.94 cents per Magma share.
Panoramic currently holds 9.34% of the miner.
According to Panoramic, its offer represents a 206.7% premium to the market valued of Magma’s exploration assets as of 2 February.
The offer is conditional on a minimum of 90% acceptance; that there is no divestment of Magma’s gold assets; and that no ‘prescribed occurrences’ happen.
Panoramic’s offer opens on 23 February and closes on 23 March.
Magma has projects in Western Australia and Canada.