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Highlights
- FEG has lodged its Target’s Statement with ASIC on 25 June 2026, formally responding to Xingye Gold (Hong Kong) Mining Company Limited’s AUD 0.13 per share unsolicited takeover offer.
- The Independent Board Committee unanimously recommends shareholders REJECT the offer and take no action, following its formal review process.
- Independent expert Lonergan Edwards & Associates Limited values FEG at AUD 0.324–0.444 per share, indicating a 60%–71% discount to the offer price.
- Around 23.51% of shareholders have indicated they will not accept the offer.
- FEG continues advancing its Idenburg Gold Project, supported by a 51% acquisition, 44% resource upgrade to ~780,000 ounces, ongoing drilling, permitting progress, and metallurgical recoveries up to 95%.
Far East Gold Ltd (ASX:FEG) has lodged its Target’s Statement in response to an unsolicited conditional off-market takeover offer from Xingye Gold (Hong Kong) Mining Company Limited to acquire all remaining ordinary shares at AUD 0.13 per share . The document, filed with the Australian Securities and Investments Commission (ASIC) on 25 June 2026 , sets out the company’s formal response, including an Independent Board Committee (IBC) recommendation to reject the offer and take no action .
FEG established IBC to oversee the evaluation of the takeover proposal, comprises independent directors responsible for all communications and decisions relating to the offer. The IBC has appointed Canaccord Genuity (Australia) Limited as financial adviser and Thomsons as legal adviser to support its review process.
The committee also acknowledged the presence of a non-independent director associated with Xingye Gold (Hong Kong) Mining Company Limited , noting the separation of decision-making authority within the board structure.
Recommendation to Reject the Offer
The IBC has unanimously recommended that shareholders REJECT the offer and take no action . The recommendation applies to shares held or controlled by all independent directors.
Key stated factors by Justin Werner, FEG’s Chairman, include:
- Xingye Gold’s unsolicited offer is assessed as below underlying asset value , with independent expert Lonergan Edwards & Associates Limited valuing FEG at AUD 0.324 – 0.444 per share , implying a 60%–71% discount to the AUD 0.13 offer; the bid is considered not fair and not reasonable for non-associated shareholders.
- The offer is viewed as aligned with a period of pending value catalysts , including the Idenburg Scoping Study, development drilling, resource growth activities, and ongoing permitting and feasibility work , which are yet to be fully reflected in the share price.
- Approximately 51% of shareholders do not intend to accept the offer at the current price level.
- The bid remains subject to multiple conditions, including regulatory approvals in China , creating uncertainty over whether it will proceed to completion.
- Acceptance may result in shareholders missing potential future superior proposals from other parties.
Development Activity Advancing Across FEG’s Portfolio
FEG highlighted ongoing technical and development progress across its portfolio, including advancement of its flagship Idenburg Gold Project .
Key developments referenced include:
- A 51% interest acquisition in the Idenburg Gold Project
- A 44% increase in JORC Mineral Resource Estimate to approximately 780,000 ounces of gold at 3.1g/t Au
- Advancement of the Idenburg Scoping Study and related drilling programs
- Progress in permitting approvals and environmental clearances , including UKLUPL and PIPPIB approvals
- Metallurgical testing reporting up to 95% gold recovery at the Sua prospect
FEG shares traded at AUD 0.15 per share on 25 June 2026.
