Playing hard to get has paid off for Robust Resources, with an increased takeover bid thrusting their share price up 52 per cent on Friday.
The Australian-based precious metals miner resisted takeover bids from a partnership of Stanhill Capital Partners and Droxford International in July, with chairman David King warning shareholders to take no action on the offer of $0.315 per share, stating the bid was “opportunistic and made in the face of very encouraging drilling results”.
Stanhill’s bid of $0.49 per share on Friday quickly drove the share price from a previous close of $0.295 up to $0.45, representing a premium of 123 per cent on the share price of $0.22 at the time of the initial offer.
Robust said the bidders currently control 46.6 per cent of the voting power, after Droxford joined the takeover to add to Stanhill’s direct holdings of 19.9 per cent.
Robust have operations in Indonesia, Philippines, and Kyrgyz Republic, with their key asset the Batu Perak project on Romang Island in Indonesia.
The drilling project in the Perak Basin returned high grade assay results, with individual samples up to 10g per tonne of gold and 1190g of silver announced in June.
Exploration targets estimate the project will yield 400,000 to 600,000 ounces of gold, 20 to 30 million ounces of silver and 1 to 1.5 billion pounds of base metals.