Mr Summers, with backing from an unnamed Middle Eastern entity, organised a $112.5 million bid for Mallee that refinanced the company at 21¢ a share last October, but that bid was unsuccessful. He and his backers returned with an $80 million cash bid, which was also rejected in March, in favour of a cheaper bid from Hartree.
“[Mr Summers] understands that the acquisition of the Avebury mine by Hartree MI UK Limited and/or Hartree Metals LLC by way of a credit bid has occurred, and the acquisition is currently before [FIRB],” Cornwalls’ lawyers wrote in the letter to FIRB.
The Mallee minority shareholder believes Hartree’s offer, purported to be $803,000 in cash, along with the expulsion of outstanding debt, significantly undervalued the nickel miner.
“The receivers have not provided any explanation as to the sudden reduction in the value of the assets of Mallee, and have chosen not to negotiate with other potential bidders, including our client, and instead, preferred the related party,” the letter said.
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