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Intermin Resources Limited (ASX:IRC) is into exploration and development of mineral deposits in Australia for gold, vanadium/molybdenum, nickel, and copper. The key projects of the company include Menzies gold project; Nanadie Well prospect; and Richmond oil shale-vanadium-molybdenum project.
On 06 February 2019, the company has provided a presentation of the merger with MacPhersons. MacPherson's shareholders will receive one share of Intermin for every 1.8227 shares held for MacPherson. After the completion of the merger, Intermin and MacPherson's shareholders will have a stake of 55 percent and 45 percent of Horizon Minerals, respectively. The proposed merger will be implemented through a scheme of arrangement. Intermin will be named as Horizon Minerals post-merger subject to the approval of Intermin shareholders.Â
The proposed merger with MacPhersons will create several benefits and synergies. Horizon will have combined mineral resource of 1.12Moz with a significant open cut and underground growth potential. The board and management of Horizon will have strong technical skills and experience in exploration, mine development, mill construction, operations and corporate. The merger might experience enhanced market relevance with strong balance sheet, improved liquidity and pre-production status, coupled with a strategy that is consistent with the strategy of Intermin of pursuing logical regional consolidation opportunities to unlock value.
The shareholderâs value will be driven by the following strategies. The combination with MacPhersons provides the immediate critical mass and baseload feed to unlock a standalone development in the best interests of both IRC and MRP shareholders. The proposed transaction is consistent with Interminâs objective of building a mid-tier gold mining business in the West Australian Goldfields. The merger will deliver enhanced market relevance and re-rating potential driven by a stronger balance sheet, improved liquidity, and pre-production status. The board as well as the management team has the drive and track-record to deliver the corporate strategy. Further, logical and complementary consolidation opportunities are being actively pursued, and exploration and development studies in 2019 will drive growth ahead of future production with clear long-term upside potential.
The global Inferred Mineral Resource for Richmond totals 2,579Mt grading 0.32% V2O5at a 0.29% cut-off grade, making it one of the largest Vanadium deposits in the world. Metallurgical test work is being conducted in two of Chinaâs leading vanadium research laboratories. Results from the test work confirm ability to upgrade to +1.6% V2O5 with further test work underway, and 17,500m of infill drilling commenced to inform the PFS.
Now let us quickly have a look at the Intermin Resources Limitedâs stock performance and the return it has posted over the last few months. The stock is currently trading at a price of $0.115 and increased by 4.545% during the dayâs trade, with a market capitalization of ~$25.89 million. The stock opened at $0.110 with its day low at the same price and a dayâs high price of $0.120. The stock has yielded a negative YTD return of 18.52% and posted negative returns of 35.29%, 26.67% and 18.52% over the last six months, three months and one-month period, respectively. It has a 52-week high price of $0.310 and a 52-week low of $0.110, with an average trading volume of 121,783 approximately. The stock is trading at a PE multiple of 6.180x with an EPS of AUD 0.018.
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