Metminco Ltd (ASX:MNC) has gained a new substantial holder in Sandfire Resources NL (ASX:SFR).

Sandfire become a substantial shareholder on August 16, 2019 with a total of 998.9 million shares for a 17.67% interest.

Takeover of Andes Resources

Last week the company closed its all scrip takeover offer for 100% of the fully paid shares in Andes Resources Limited and has obtained 99.7% of all Andes shares on issue.

Metminco has now also started the compulsory acquisition process for the remaining Andes shares on issue.

The compulsory acquisition will be on the same terms as the takeover offer – 25 Metminco shares for ever 1 Andes share held.

Capital raising

The company also completed a capital raising of $2.332 million in connection with its all scrip takeover offer for Andes Resources Ltd.

The capital raising was strongly supported by Sandfire, many existing shareholders and a number of new supporters that have shown interest in the merged entity.

Metminco chief executive officer Kevin Wilson said: “We are pleased for the overwhelming support from the merger and look forward to getting on with drilling our key gold prospect at Chuscal.”