Metalicity’s takeover play for project partner Nex Metals has been boosted by the independent expert concluding the offer is both fair and reasonable.

In a blow to the Nex board – which urged shareholders to reject the offer, the BDO Corporate Finance report found Metalicity’s (ASX:MCT) offer of 4.81 shares for every Nex share on issue was greater than its valuation estimate of NME at between nil and 1c per share, well below the current price of 3.8c.

The report added that in the absence of a superior offer, the MCT offer was reasonable as the position of NME shareholders would be more advantageous if they accepted.

BDO also declined to attribute any value to the Kookynie Tailings project, noting that any value generated would be offset by the cost of rehabilitating the project regardless of who owned it.

“I encourage all Nex Metals shareholders to read the very thorough IER. Other than our bidder’s statement, to date it is the only real professional material they have available to assist them in deciding on our Offer and it offers an independent assessment of the value of Nex Metals and its(disputed) tailings project by an external expert,” Metalicity chairman Andrew Daley said.

“So far, the Takeovers Panel has declared two attempts by the Nex Metals board to provide a Target’s Statement to be defective and misleading.

“In the absence of proper advice from their board, Nex Metals’ shareholders should pay close attention to the IER, which concludes that our Offer is fair and reasonable, and accepting the Offer is more advantageous than not accepting.”

Metalicity currently holds 34.21% of Nex’s issued shares and had in late March issued its takeover target and partner for the Kookynie and Yundamindra joint venture projects with non-payment notices totalling $1.28m.




This article was developed in collaboration with Metalicity, a Stockhead advertiser at the time of publishing.


This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.