Metro Mining Limited has unveiled plans to acquire all of the shares of Gulf Alumina which it does not already own.
Metro, which currently holds a 39.3% in Gulf, said it considers its offer to be superior to the highly conditional rival offer from Moly Mines Limited.
According to the company, a successful takeover would result in considerable cost synergies as Metro’s Bauxite Hills bauxite project adjoins Gulf’s bauxite project at Skardon River, Cape York.
“Metro considers that its Offer provides the logical opportunity to unlock over $200 million in synergies from Combining Metro’s and Gulf’s complementary projects, as estimated by Grant Thornton and Xstract Mining Consultants in Gulf’s independent expert report dated 13 May 2016,” Metro told the ASX.
Metro is offering Gulf shareholders to choose to receive either cash of $0.60 for each Gulf share they own; or a cash and shares alternative of $0.50er share plus 1 share in Metro for each Gulf share they own.
The company said it is looking forward to the Gulf board confirming that Metro’s Offer is superior to Moly’s highly conditional offer.