Metallica Minerals Limited (ASX: MLM) is a metal mining and exploration company headquartered in Brisbane, Australia. MLM is primarily a bauxite developer having interests in graphite and mineral sands. It has four projects under it namely Urquhart Bauxite, Urquhart HMS, Graphite, and Tenement Schedule.
Today, the securities of MLM were placed in a trading halt at its request. The reason for the trading halt given by the company was an announcement pending for release. The announcement was related to an update on the proposed merger of MLM with Melior Resources Inc. (TSX: MLR). The company requests that the Trading Halt remains in place until the commencement of normal trading on Wednesday 2 January 2019, unless before that time the company makes an announcement.
Melior is also a metal mining and exploration company based out in Vancouver, British Columbia, Canada, classified as a Tier 1 Mining Issuer by the TSX Venture Exchange It is the owner as well as the operator of Goondicum mine situated in Queensland, Australia, having a high grade of ilmenite and apatite minerals.
On 13 September 2018, MLM entered into a binding Arrangement Agreement (AA) with MLR by a Canadian Plan of Arrangement in which MLM agreed to acquire all the MLR’s issued capital by the issue of 20 new MLM shares for every 1 MLR share held. MLR and MLM will hold 64% and 36% shares respectively in the merged entity. The merged entity will have great potential over the assets located in Queensland, Australia.
On 27 November 2018, MLR’ shareholders approved the previously announced merger with MLM. The completion of the Arrangement was subject to the approval of the Arrangement by shareholders of Metallica and the receipt of a final order of the Supreme Court of British Columbia, which final order was expected to be sought on December 21, 2018, but till date, there has been no decision. Also, the shareholders passed a resolution approving the application to the Ontario Securities Commission for the permission of MLM being reported as a “designated foreign issuer.”
On 7 December 2018, BDO Corporate Finance (QLD) Ltd (BDO), the world’s leading accountancy and advisory organizations, who acted as an independent expert, presented its Independent Expert’s Report and Financial Services Guide (IER) in relation to the merger of the two entities. It supported the rationale for merger and confirmed that the merger is reasonable for MLM shareholders. For preparing the IER, BDO appointed AMC Consultants Pty. Ltd. (AMC), a leading mining consultant, as the Independent Technical Specialist who validated the operating plan for the Goondicum ilmenite mine. All the MLM directors recommended shareholders to vote in favour of the proposed merger.
During the year, the scrip price has dropped by 47.37% falling from 5.7 cents at the beginning of the year to 3 cents as of December 27, 2018. There is no change in the scrip price today because of the trading halt. MLM’s shares last traded at $0.030 with the market capitalization of circa $9.67 million.