Regis Resources withdraws interest in Capricorn Metals takeover

Gold miner Regis Resources has withdrawn a takeover offer for Pilbara-focused Capricorn Metals due to a lack of support from the target’s largest shareholder.

Regis announced last week it had put forward a private, non-binding proposal to acquire 100 per cent of Capricorn Metal’s shares at a rate of 11.4 cents in Regis shares per Capricorn share.

This would have represented a 93.2 per cent premium on Capricorn’s share price of 5.9 cents as of September 21 closing.

While the offer had the support of shareholders Nedlands Nominees (9.94 per cent) and Centrepeak Resources Group (3.83 per cent), Capricorn’s second and fourth largest stock holders, Hawke’s Point Holdings (18.93 per cent) confirmed to Regis that it would not support the takeover proposal.

The result may not come as a surprise to Regis, which had already announced in its September 24 statement that it would meet with representatives of Hawke’s point to try and secure its support.

“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,” last week’s report said.

In a statement today, the company said it had ceased discussions with Capricorn and Hawke’s Point but reserved the right to make a further proposal in future.

Capricorn Metals’ primary project is the in-development Karlawinda gold project in the Pilbara. It wants to build a processing plant capable of delivering 100,000oz/y of gold for an initial mine life of 8.5 years.

The project is expected to cost around $88 million with first production pegged for fourth quarter 2019.

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