Regis Resources seeks takeover of Capricorn Metals

Gold miner Regis Resources has confirmed its interest in acquiring explorer and developer Capricorn Metals.

Regis, responding to media speculation regarding a potential transaction between the two companies, has put forward a confidential, indicative and incomplete proposal to acquire Capricorn.

The proposal offers 11.4 cents for each Capricorn share, a 93.2 per cent premium on the target’s 5.9-cent closing price on September 21.

Capricorn, which has a market capitalisation of $44.1 million, is advancing its flagship Karlawinda gold project in the Pilbara, Western Australia towards development.

Regis, in an ASX announcement, said it required the recommendation of Capricorn’s board, support of Capricorn’s major shareholders and the execution of a binding implementation agreement before it could announce a binding offer.

“While the board of Capricorn has confirmed to Regis that it would unanimously recommend the proposal and significant shareholders Nedlands Nominees and Centrepeak Resources Group have indicated their support, Capricorn’s largest shareholder, Hawke’s Point (with a 18.9 per cent interest), has to date not been prepared to support the proposal,” Regis said.

“Regis is scheduled to meet representatives of Hawke’s Point in the coming week to determine whether it will be possible to secure Hawke’s Point’s support for the proposal.”

Regis may abandon its planned offer for Capricorn if it is unable to secure support from Hawke’s Point.

“In any event, Regis reserves its right to make an offer, or further proposal, for 100 per cent of Capricorn if a third party makes or proposes an alternative offer for Capricorn,” Regis added.

Capricorn also today confirmed it had received a non-binding, indicative acquisition proposal from Regis.

“While discussions are continuing, there is no certainty that an agreement will be reached at any future time which may be capable of being put to shareholders for consideration,” Capricorn reported to the ASX.

Capricorn announced results of a feasibility optimisation study for the Karlawinda project in June.

The study outlined the proposed development of a 3 million tonne per annum processing plant to deliver annual production of 100,000oz over an initial 8.5-year mine life.

Karlawinda is estimated to cost $88.1 million to develop, with first production forecast for the fourth quarter of next year.

Send this to a friend