MetalsTech Limited has received a non-binding acquisition offer from Trans Metal Fund LP for its subsidiary Ortac Resources, the owner of the Sturec Gold Project in Slovakia, amid a strategic process facilitated by Minmetals Securities Co., attracting multiple interested parties.
Proposed Transaction Summary
Trans Metal Fund LP’s proposed acquisition of MetalsTech involves an upfront cash payment of $36 million USD on closing, an additional $20 million USD upon obtaining an underground mining activity permit, and the retention of a 2% gross overriding royalty on the Sturec Gold Project’s revenue.
MetalsTech has the option to convert the royalty to a lump sum cash payment of $25 million USD after the Project’s commercial production begins.
The comprehensive offer stands at $81 million USD, equivalent to $120.7 millionAUD and approximately $0.639 per share AUD.
Commercial production initiation is determined by the extraction of 150,000 tonnes of material from the Project.
Following closure, Trans Metal Fund LP pledges to actively pursue project permits and conduct essential studies for a planned restart, with the possibility of support from MetalsTech in permitting and development activities.
MetalsTech, with 188,954,590 fully paid ordinary shares on issue and a 52-week high share price of $0.52, is now carefully evaluating its options.
The proposed transaction, subject to definitive agreements and regulatory approvals, brings not only immediate financial gains but also the potential for ongoing benefits through the retained royalty and future commercial production at the Sturec Gold Project.
MetalsTech has refrained from making specific comments on the offer but stated that it is actively considering all available options.
Source: The Market Bull