RECOMMENDED TAKEOVER OFFER BY TANGIERS PETROLEUM FOR JACKA RESOURCES Highlights: ? Tangiers Petroleum to acquire Jacka Resources via an off-market takeover bid ? Offer ratio equal to 0.468 Tangiers shares for every Jacka share held ? Tangiers Offer values Jacka shares at $0.112 based on Tangiers last closing price of $0.24 per share on 29 November 2013, being a 56% headline premium to Jacka’s last closing price ($0.072) and 53% premium based on the Jacka and Tangiers 1 month VWAPs1 ? Jacka Board unanimously recommends shareholders accept the Tangiers Offer in the absence of a superior proposal ? Based on the closing share price of Tangiers on ASX on 29 November 2013, the Offer values Jacka at approximately $37m on an undiluted basis2 ? Upon completion of the transaction, existing Tangiers shareholders and Jacka shareholders will own approximately 53% and 47%, respectively, of the issued ordinary shares of the combined entity (on an undiluted basis) ? Creation of a premier small to mid-cap African focused upstream oil and gas company, with pro-forma cash of $8m with a further US$22m expected to flow in from executed farm-in agreements relating to Tangiers’ Tarfaya Project and Jacka’s Odewayne Project ? Eve Howell to remain as Chairman of Tangiers, with Bob Cassie to become Managing Director of Tangiers upon completion ? Tangiers to provide Jacka with a $2.5m standby loan facility to assist Jacka’s funding in Q1 2014 ? Bidder’s and Target’s Statements expected to be lodged by mid January 2014
JKA Price at posting:
7.0¢ Sentiment: None Disclosure: Not Held