Forrestania Resources has extended its takeover offer for Zenith Minerals for a tenth time. The off market offer, previously due to close on October 21, will now stay open until 5pm AWST on November 12. Forrestania is offering one of its shares for every 4.3 Zenith shares and held a relevant interest of about 58.61 percent in Zenith on October 14, including acceptances.
In its October 14 update, the company said it had complied with Takeovers Panel orders and intended to declare the bid unconditional as soon as it can. A Panel review upheld an earlier declaration of unacceptable circumstances around the takeover, centred on disclosure deficiencies relating to Forrestania’s substantial holding in Zenith and its role in the Edna May acquisition.
That transaction, completed on September 4, cost $300 million, split $210 million in cash and $90 million in Forrestania shares, supported by a separate $310 million capital raising. Edna May, bought from Ramelius Resources, added a 2.9 million tonne per annum processing plant and a gold resource of about 945,000 ounces in Western Australia. The Panel found the acquisition and associated share issues materially changed Forrestania’s capital structure while its share based offer for Zenith remained open.
Zenith’s directors have maintained their recommendation that shareholders accept the offer in the absence of a superior proposal. The prize asset is Zenith’s Consolidated Dulcie gold project, which Forrestania pitches as a route for Zenith holders to swap early stage exploration exposure for shares in a group nearing production.