- MetalsTech (ASX:MTC) receives a preliminary non-binding proposal from Toronto-based private equity fund Trans Metal Fund
- The offer is to acquire all shares in Ortac Resources, a subsidiary of MetalsTech, which owns the Sturec gold project in Slovakia
- The total offer stands at US$81 million
- TMF, managing approximately US$500 million in total assets, has a track record of overseeing two large-scale operating polymetallic mines
- MTC shares are up 4.17 per cent, trading at 25 cents at 12:42 pm AEDT
MetalsTech (ASX:MTC) has received a preliminary non-binding proposal from Toronto-based private equity fund Trans Metal Fund (TMF) to acquire all shares in Ortac Resources, a subsidiary of MetalsTech, which owns the Sturec Gold project.
TMF’s offer includes an upfront cash payment of US$36 million (A$54 million) and an additional US$20 million upon obtaining a mining permit. As part of the deal, MetalsTech will retain a two per cent gross overriding royalty, convertible to a lump sum of US$25 million.
The total offer stands at US$81 million (AUD $120.7 million) or 63.9 cents per share.
TMF, managing approximately US$500 million in total assets, has a track record of overseeing two large-scale operating polymetallic mines.
Post-closing, TMF is committed to securing permits and conducting studies, with MTC providing the necessary support.
MTC shares were up 4.17 per cent, trading at 25 cents at 12:42 pm AEDT.