News: Panoramic makes offer for Magma

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Magma Metals Limited (ASX:MMW, TSX:MMW) has received a takeover offer from Panoramic Resources (ASX:PAN).

 

Panoramic currently owns 9.34 per cent of the company.

 

The off-market bid could see Magma shareholders receive two Panoramic shares for every 17 Magma shares, implying a value of $14.94 per Magma share.

 

Panoramic chairman Brian Phillips says Magma shareholders who accept the offer will become a part of a more diversified company with a diverse portfolio of operating mines.

 

Conditions of the offer include that there be no spin-out of Magma’s gold assets.

 

Panoramic Resources reported a net profit of $22.3 million for 2011.