Dwyka Resources Ltd is looking to acquire Minerva Resources Plc (AIM: MVA). The company is in advanced stage discussions that may lead to an offer for the entire issued and to be issued share capital of Minerva.
Minerva's main focus is resource development in Ethiopia where the Company has first-mover advantage on prospective ground on the Arabian-Nubian shield. Key projects include the gold resources at the Tulu Kapi and Guji prospects and the Yubdo Platinum Mine, located in western Ethiopia.
The stated offer price if an offer is made after due dilligence is an all share offer by Dwyka at a value of not less than 1p per Minerva Share. This would represent a premium of at least 42.9% to the middle market price of 0.7p per Minerva share as at close of business on 29 January 2009.
The board of Minerva has confirmed to Dwyka that it intends to give its recommendation to Minerva shareholders to accept any firm offer by Dwyka based on the Possible Offer and this announcement is being made with the consent of the board of Minerva.
Certain Minerva shareholders have signed non-legally binding letters of intent to accept, if an offer on the terms of the possible offer stated above were to be made, in respect of 65,701,600 Minerva shares owned by them representing 42.6 per cent.
Dwyka also confirms that it is the third party with whom Minerva entered into a binding loan agreement and a non-legally binding memorandum of understanding, as announced by Minerva on 5 May 2009.