Elemental Minerals (ASX/TSX: ELM) has reported that Hong Kong listed Dingyi Group Investment (HKG:0508) is making progress toward making a more complete offer for the company.
In April, Dingyi Investment Group made an incomplete A$160.8 million indicative, non-binding, incomplete and conditional offer for Elemental Minerals.
This would equate to $0.66 per share.
In early May, Dingyi said it had substantially completed its confirmatory due diligence review on Elemental.
The due diligence enquiries are expected to be completed in the coming weeks. Dingyi has completed its technical due diligence review on Elemental’s project and that all existing questions on that issue have been addressed to Dingyi’s satisfaction.
Progress has been also been made in seeking to finalise definitive documentation in respect of the proposal. Dingyi has confirmed that it continues to expect that if its proposal is made, it will not be conditional upon financing or any Chinese or Australian Foreign Investment Review Board approvals.
Pala Investments Limited and allied interests, with a 13.6% stake have agreed to an extension of their letters of intent with Dingyi until the earlier of signing a mutually agreed pre-bid agreement or 30 June 2013.
There is a 50.1% minimum acceptance condition.
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