iberian board recommends takeover 9:39am

the age newspaper

Iberian board recommends takeover 9:39AM


The board of goldmining takeover target, Iberian Resources, has recommended shareholders accept an offer of four Tamaya Resources shares for every Iberian share.

If the unanimous recommendation of the board is approved by shareholders, it would create a diversified mining business with a pro-forma combined market capitalisation of about $250 million, chairman Graeme Walker said, in a letter to shareholders released on Wednesday.

The combined company would have positive cash flow from its copper-gold producing interests in Chile as well as an outstanding project pipeline of near term gold producing assets, the letter said.

"Your board unanimously recommends that IBR Shareholders accept TMR's offer in the absence of a superior proposal or the terms of the offer differing in any materially adverse manner from the agreed bid terms of the offer," Mr Walker's letter reads.

Iberian Resources' target's statement says the terms of the offer represent a 46.5 per cent premium on the closing price of Iberian Resources shares prior to the announcement of the bid on 26 February.

The offer was also 57.1 per cent premium on the volume weighted average price of the shares for the three months preceding the announcement.

The statement also says both companies possess international interests focussed on growth through investment in exploration and development.

"A merged entity would present shareholders with an acquisition focussed, mid-sized emerging producer and a sizeable project pipeline at various stages of mine development," the statement says.

"It is anticipated there will be synergistic benefits as the merged entity will draw upon the combined resources of a board and executive team with considerable Australian and international mining experience and a diverse range of skills encompassing project generation, exploration, mine development and production."

Iberian Resources owns and operates the Lichkvaz gold project in Armenia along with exploration projects in Portugal.

Tamaya's main project is a copper and gold interest about 410 kilometres north of Santiago, in Chile.