Azumah Resources Limited’s (ASX:AZM) Board of Directors has advised shareholders to take no action regarding the takeover offer from IGIC Pte Ltd until the company releases a Target’s Statement.
The unsolicited off-market cash takeover offer by IGIC, as manager for and on behalf of private equity group Ibaera Capital Fund GP Limited, will remain open until at least 7.00pm (AEDST) on November 4, 2019.
Azumah’s Board said this, along with the fact that it cannot be closed early, gave shareholders plenty of time to fully consider their options.
“Further, if you sell your Azumah shares on-market and Ibaera subsequently increases its offer, you will not get the benefit of any such increase in the offer,” the board advised.
Partners in Wa Gold Project
Azumah and Ibaera are partners in the Wa Gold Project in West Africa.
There are a number of factors that Azumah considers as being supportive for the future financing and development of the project, and a possible near-term step-change in its value.
These include the scheduled completion of the updated project Feasibility Study early in 2020, the positive economic implications from discovery of high-grade depth extensions of mineralisation at Bepkong and Kunche deposits, and a 25% increase in the USD gold price over the past 12 months.
In a statement, the board said: “The Azumah Board strongly recommends that you TAKE NO ACTION and not respond to the Bidder’s Statement or take any steps to accept the offer.
“You should WAIT for Azumah’s Target’s Statement to arrive and only then consider the Azumah Board’s recommendation and what action you wish to take.”