Independence makes a move on Panoramic with $312m takeover bid
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Independence Group (ASX:IGO) has joined the ranks of larger miners moving in on their smaller compatriots to bulk up their resources, with the company swooping on Panoramic Resources (ASX:PAN).
Recent examples include Northern Star Resources (ASX:NST) securing control of Echo Resources (ASX:EAR) after launching a takeover bid in August and Silver Lake Resources (ASX:SLR) making a bid for Egan Street Resources (ASX:EGA).
Independence is offering Panoramic shareholders one IGO share for every 13 PAN shares that they own, or about 47.6c per PAN share.
This values Panoramic at about $312m and represents a 51 per cent premium over the one-month volume weighted average price – the average price that the stock has traded over a month based on both volume and price.
The mid-cap miner said the offer is consistent with its focus on metals critical to clean energy such as nickel and copper, and highlighted Panoramic’s producing Savannah nickel mine in Western Australia’s East Kimberley region as one of the reasons for the bid.
“Panoramic shareholders will be able to crystallise future value from Savannah at a very attractive price and retain exposure to its upside potential, while also gaining exposure to Nova and Tropicana and IGO’s extensive portfolio of belt-scale exploration projects prospective for nickel and copper,” Independence managing director Peter Bradford said.
In response, Panoramic recommended that its shareholders take no action until it had evaluated the offer.
Savannah produced 1342 tonnes of nickel, 855 tonnes of copper and 64 tonnes of cobalt in concentrate during the September 2019 quarter, delivering $19.5m in revenue to Panoramic.
Development of the Savannah North development is also continuing with Panoramic saying recently that it expects to mine first ore this month.
Shares in PAN rose 35.8 per cent this morning to 45.5c on the news.