Metro Mining extends unconditional takeover offer for Gulf Alumina

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Metro Mining Limited announced that it has extended and declared its unconditional off-market takeover offer for all of the shares in Gulf Alumina Limited.

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The company urged Gulf shareholders to accept the offer, saying it would unlock “logical synergies” and strategic benefits of both companies’ adjacent and near identical projects.

Metro said that Gulf shareholders that will accept the offer will gain a number of benefits, including proven board and management team, rapid project development, native title and land access agreed with traditional owners, strong balance sheet with net cash of approximately $5.3 million, as well as ASX listing and trading liquidity.

“Metro will now become Gulf’s largest shareholder, with a relevant interest of 22.1% of the issued capital of Gulf as at the close of business on 8 March 2016,” the company said in a statement to the ASX.

“By declaring its offer unconditional, all Gulf shareholders that accept the offer will receive Metro share and gain the benefits of being a Metro shareholder.”

The company said that as a major shareholder of Gulf, it expects that the Gulf Board will seek consultation in relation to any future financing contemplated by Gulf and that Gulf will avoid any finance proposals that dilute its existing shareholders or further encumber its corporate entity or project.

“Metro also advises it would be prepared to provide Gulf with an attractive, low cost, non-dilutive short term funding facility should Gulf require such funding, subject to Gulf’s board supporting an offer by Metro and there being no material adverse change in the circumstances or capital structure of Gulf,” reads the announcement.

According to Metro, the extended offer will close at 5pm (Brisbane time) 15 April 2016, unless it is extended further.