ALLEGIANCE Mining has thrown cold water over speculation that it is the latest Australian nickel play involved in takeover talks.
Allegiance's share price gained more than 6% at the start of trade on the back of talk that US commodities trader Sempra Metals had off-loaded a 4.65% stake in the company at a premium, raising speculation that another party was looking to build a stake in the nickel play, according to a report by Reuters.
However, Allegiance chairman Tony Howland-Rose denied any talk of a takeover saying he had not had any direct contact with any parties relating to an offer.
"No, I have not had any direct contact at all [with any parties relating to a takeover offer]," chairman Tony Howland-Rose told Reuters.
Howland-Rose said that while he didn't know whether or not Sempra had sold its stake, he wouldn't be surprised given the trader's stated intention to make a profit from the holding.
"But this is hot stuff at the moment ... with Jubilee disappearing from the scene," Howland-Rose added.
The Tasmanian-focused nickel play entered into a $1.76 billion offtake agreement for the nickel concentrate from its flagship Avebury project with China's largest nickel producer Jinchuan Group in April last year.
Jinchuan currently holds an 11.03% stake in Allegiance.
The news comes after Swiss giant Xstrata made a $A3.1 billion all-cash off-market takeover offer for nickel play Jubilee Mines last month.
Shares in Allegiance were 4.5c higher at 75c in early afternoon trade.
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