PERTH (miningweekly.com) – Takeover target BBX Minerals has told shareholders to reject a takeover offer from Drake Private Investment, saying the offer does not take into consideration the likelihood that a significant gold discovery can be made at the company’s Juma East project, in Brazil.
Drake in early September launched a takeover offer for BBX, offering its shareholders 4.5c in cash for each share held.
Drake and its associates already hold a 38.51% interest in BBX.
An independent expert has concluded, based on the net asset valuation of BBX’s shares, that the offer is "fair and reasonable".
However, BBX said on Tuesday that the independent expert’s conclusion did not take into account exploration upside, while an independent technical valuer’s assessment of the value of the company’s assets was based on the "multiple of exploration expenditure" valuation method, and also did not take into account exploration upside.
Drake’s offer is expected to close on October 21.
Edited by: Creamer Media Reporter
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