polaris pours cold water on lion takeover talk

Colin Jacoby
Tuesday, 29 September 2009



POLARIS Metals says that while it has been in talks with its largest shareholder, the company is unaware of any rival takeover offer to Mineral Resources’ $A67 million all-scrip bid.



Polaris Metals' Yilgarn iron ore project.

The Perth-based company today refuted a report in today’s Australian Financial Review that Lion Diversified Holdings Berhad may be making a potential cash offer for the company.

The report added that Lion’s cash offer for Polaris could be on the table by the end of this week.

“Representatives of Polaris have had discussions with representatives of Lion on a number of occasions since the announcement of the recommended offer by Mineral Resources Limited,” Polaris said today’s statement.

“However, Polaris has not received, nor is aware of, any proposal in relation to any takeover offer by Lion.”

Polaris added that the company’s board continued to unanimously recommend the Mineral Resources’ $67 million all-scrip takeover offer, in the absence of a superior offer.

Last month, Polaris recommended its shareholders accept the offer, saying it was the stand-out from a range of proposals for developing the Yilgarn iron ore project.

The company believes Yilgarn can sustain exports of 5 million tonnes of iron ore annually for up to 20 years.

Polaris and mining services group Mineral Resources are already involved in the Poondano project, currently in development with start-up planned for the first half of 2010, initially targeting iron ore exports of more than 500,000 tonnes per annum through Port Hedland.

Shares in Polaris remain unchanged at 47.5c in early afternoon trade.