Diatreme Resources Completes Major Acquisition of Metallica Minerals
DRX (DRX) Share Update July 2024 Wednesday 24th
Diatreme Acquires Over 90% of Metallica Shares
Diatreme Resources Limited (ASX: DRX) has announced a significant milestone in its off-market takeover bid for Metallica Minerals Limited (ASX: MLM), securing over 90% of Metallica's shares.
Instant Summary:
- Diatreme now holds over 90% of Metallica shares.
- The takeover offer will close on 6 August 2024.
- Compulsory acquisition process to begin soon.
- Metallica shareholders encouraged to accept the offer promptly.
Acquisition Details
Diatreme Resources Limited (ASX: DRX) has successfully acquired a relevant interest in more than 90% of Metallica Minerals Limited (ASX: MLM) shares. This acquisition is part of an off-market takeover bid where Metallica shareholders receive 1.3319 ordinary shares in Diatreme for each Metallica share held.
The offer, detailed in Diatreme's bidder's statement dated 28 March 2024, is set to close at 7:00 PM (Sydney time) on Tuesday, 6 August 2024. Diatreme has confirmed that this deadline will not be extended further.
Compulsory Acquisition
With Diatreme's interest now exceeding 90%, the company will proceed with the compulsory acquisition of the remaining Metallica shares under the Corporations Act 2001. This process will lead to Metallica's removal from the official list of the ASX upon completion.
Shareholders who accept the offer before the closing date will receive their consideration within 10 business days. Those who do not accept by the deadline will have to wait until the compulsory acquisition process is finalized, which could take at least six weeks after the notice is given.
Encouragement to Shareholders
Diatreme strongly encourages all remaining Metallica shareholders to accept the offer promptly to benefit from the offer consideration as soon as possible. Instructions for acceptance are provided in the bidder's statement and accompanying acceptance form.
Shareholders can also accept the offer online by visiting the specified website and following the provided instructions. For any questions, shareholders are advised to contact their legal, financial, or other professional advisers or call the shareholder information line.
This acquisition solidifies Diatreme's position in the mineral and silica sands market. The successful takeover is expected to positively impact Diatreme's stock as it expands its project portfolio and strengthens its market presence. The compulsory acquisition process will streamline operations and potentially lead to increased investor confidence.
Investor Reaction:
Analysts have noted the strategic importance of this acquisition for Diatreme. Investors have generally reacted positively, seeing this move as a significant step towards Diatreme's growth and market consolidation.
Conclusion:
Investors should monitor the progress of the compulsory acquisition process and consider the potential long-term benefits of Diatreme's expanded portfolio. Accepting the offer promptly will ensure shareholders receive their consideration without delay.