Resolution Minerals (ASX:RML) won’t be taking up Snow Lake’s $225 million offer to buy the Horse Heaven antimony project in Idaho, with the asset level, mostly scrip-based approach, “less attractive” than the company would have liked.
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“Resolution wishes to thank Snow Lake for their continued interest in Horse Heaven and invites them to revise the offer at any time in the future on terms that would be more appealing to RML criteria,” the company wrote.
There was plenty that kept the deal from looking better, Resolution said in an update on the non-binding offer today, including how the deal was structured.
Snow Lake had hoped to seal the deal on their terms, including keeping the project acquisition situated at the asset level, instead of higher.
On that, the company stated: “[RML] notes that Snow Lake’s $225 million offer to Horse Heaven was structured at the asset level rather than at a company level, and as such is not tax effective for RML or its shareholders.”
There was no love lost for how much Snow Lake leaned on shares over cash, either.
“RML would have preferred a significant portion of the offer to be cash-based,” they wrote.
Today’s rejection leaves Horse Heaven under Resolution’s control; the explorer has been digging for antimony, gold, tungsten, and silver mineralisation in two known highly prospective corridors recently.
Resolution is also still looking to list on the Nasdaq composite, wielding its Idaho-based project as one of the key selling points for the U.S. index.
That plot follows the Oz company listing on the OTCQB last Thursday.
RML shares have jumped +5.27% on today’s news.
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