AIC Mines and Demetallica are poised to consolidate and build a new Australian copper and gold mining company.
Under the terms of a bid implementation agreement, AIC Mines has agreed to improve its takeover offer consideration to one AIC Mines share for every 1.3 Demetallica shares held, which the Demetallica board has agreed to unanimously recommend.
Once finalised, the move will see a combination of AIC’s Eloise mine and processing facility with Demetallica’s Jericho copper deposit in the Chimera project, which are located only four kilometres from each other in Queensland.
The merger is expected to create a stronger company with enhanced scale, market relevance and trading liquidity.
Under the offer, Demetallica shareholders will own approximately 21 per cent of the combined company.
Demetallica managing director Andrew Woskett said the consolidation of the Chimera project with the Eloise mine made obvious sense.
“We are pleased to have reached commercial agreement with AIC Mines such that both AIC Mines and Demetallica shareholders can enjoy the synergies this consolidation can deliver,” he said.
“Given the uniqueness of the situation, in terms of the assets so plainly being worth more together than they are individually, we have strong support for the transaction from a large number of our shareholders, and expect similar support from the market more broadly as it understands the robust long-term copper-gold producer this creates.”