Intrepid Mines Limited’s (ASX: IAU) share price advanced by 28.75 percent on 19 September 2018 after the company announced that it has entered into takeover implementation deed in respect of an off-market takeover offer to be made by Intrepid for all the issued ordinary shares in A1C (AIC Resources Ltd).
Under the takeover bid, Intrepid is offering 1 Intrepid share for every three shares of A1C. Under the ASX Listing rules, this transaction is classified as ‘reverse takeover’ and it is also subjected to the approval of Intrepid shareholders.
This offer will provide several benefits to both A1C and Intrepid, as the combined entity of both companies will have a large contiguous land holding which is highly prospective for base metals and gold in Western Australia. The combined entity will also be benefited from strong cash balance and the general and administration costs will also reduce which will allow the entity for more ground expenditure. This offer is subject to various conditions like receipt for acceptance of minimum 90% of A1C’s shares, successful competition of Mumbwa and Kitumba copper projects of Intrepid, and approval of intrepid shareholders.
In company’s financial result for six months ended 30 June 2018, the loss before tax from continuing operations was $456,000 which was $1,356,000 a year ago. The Company’s total comprehensive loss attributable to owners was $612,000 or $0.06 per basic and diluted loss per share compared to $17,785,000 or $1.05 per basic and diluted share a year ago. Basic and diluted loss per share for continuing operations was $0.03 which was $0.08 previous year. Net cash used in operating activities was $822,000 compared to $926,000 a year ago.
IAU’s share price traded at $1.03 at market capitalization of $11.03 million as on 19 September 2018 (AEST 4:45 PM).
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