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re: Ann: DMM: Notification of interest - supe... http://au.news.yahoo.com/thewest/business/a/-/wa/7058893/dmc-receives-superior-offer-from-rival-bidder/

DMC receives superior offer from rival bidder
AAP April 14, 2010, 7:30 am

UPDATE 11am: Shares in junior iron ore explorer DMC Mining jumped before the company called a trading halt after receiving a second takeover offer, superior to an earlier bid from Cape Lambert Resources.

While DMC released no details of the new bid, in a statement the company said it was "at a price that is superior to the Cape Lambert offer and could potentially lead to a transaction that returns more value to shareholders than the Cape Lambert offer".

DMC said the new bid - a "notification of interest" - was conditional and, at this stage, non-binding.

"It is not yet complete and is not capable of acceptance in its current form," DMC said.

It did not identify the source of the bid.

The company expects to provide more information on the bid in announcement before the opening of trade on Friday.

DMC shares were up five cents, or 12.2 per cent, to 46 cents before the trading halt was called this morning.

Cape Lambert on March 23 bid 40 cents per share for DMC, whose main asset is an 80 per cent interest in a project in the Republic of Congo, in West Africa.

The company said its directors would examine the new bid before making a recommendation on it.

"The directors intend to enter into further discussions and negotiations with the party that has provided the notification of interest," the company statement said.

"However, there is no certainty that these discussions will lead to a competing transaction.
"The directors of DMC will advise shareholders of a recommended course of action in due course and at this stage advise shareholders to take no action."

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