A 38c-per-share takeover offer from mid-tier miner Sandfire (ASX:SFR) isn’t good enough, MOD Resources says — but the advanced copper explorer has left the door open for a higher bid.
Sandfire tabled the sneaky takeover proposal after completing due diligence over a potential joint venture arrangement, partial sale, and market placement to support development of MOD’s T3 copper project.
MOD is close to completing a feasibility study for its flagship 60 million tonne T3 project in the central Kalahari Copper Belt, Botswana.
The proposal values the company at $113m , which “undervalues the assets of MOD”, the explorer told investors.
The opportunistic bid was also made as MOD’s share price and the MOD/Sandfire exchange ratio were at a two and a half year low.
But if a “compelling” price was presented MOD was willing to come back to the table.
The explorer also announced a successful $10m institutional placement at 30c per share — a 36 per cent premium to the company’s last closing share price on the ASX.
An additional $5m rights issue will be offered to existing shareholders priced at 24c per share – with details to be announced shortly, the company says.
The $15m will be funnelled into advancing T3 towards production and defining additional resources in the surrounding area.
Get the latest Stockhead news delivered free to your inbox
For investors, getting access to the right information is critical.
Stockhead’s daily newsletters make things simple: Markets coverage, company profiles and industry insights from Australia’s best business journalists – all collated and delivered straight to your inbox every day.
Markets coverage, company profiles and industry insights from Australia’s best business journalists – all collated and delivered straight to your inbox every day.
It’s free. Unsubscribe anytime.
By proceeding, you confirm you understand that we handle personal information in accordance with our Privacy Policy.
I want the news:
Hear it first
Get the latest Stockhead news delivered free to your inbox.
Thanks! You’re subscribed, Stockhead news is coming your way soon.