Demetallica accepts beefed-up takeover bid from AIC Mines

Demetallica (ASX: DRM) management is giving shareholders the green light to approve a beefed up, all-script takeover offer from AIC Mines (ASX: A1M).

AIC Mines has upped the ante, offering Demetallica shareholders 1 AIC Mine share for every 1.3 Demetallica shares held compared to 1.5 a month ago.

This values Demetallica at approximately 39 cents per share based on AIC's last close price or another 15.7% on top of the previous offer.

Demetallica views this offer as a "logical consolidation to grow an exciting growth-oriented mid-tier Australian copper and gold mining company which will deliver strong benefits for both AIC Mines and Demetallica shareholders."

Demetallica shareholders will hold approximately 20% of the combined entity. This also means Demetallica shares will be pegged on a 1:1.3 ratio until the merger takes place.

A logical move

The takeover has been deemed a 'logical' move by both companies. AIC's Eloise Copper Mine sits just four kilometers away from Demetallica's Jericho Copper Deposit.

“Given the uniqueness of the situation, in terms of the assets so plainly being worth more together than they are individually,” commented Managing Director Andrew Woskett.

“I am extremely proud of the exploration team I have around me, moving quickly to elevate the prominence of Jericho as one of Australia’s most exciting copper-gold growth projects, as demonstrated by the recent MRE and new Exploration Targets outlined for Jericho.”

“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 added.

Next steps

Demetallica recommends that shareholders accept the offer and have until 28 November 2022 to do so.

The takeover has been well-received among major shareholders, with seven, who collectively own 24.4% of the company, expressing intentions to accept the AIC takeover.

Demetallica share price chart

Disclaimer: Market Index helps small-cap ASX listed companies connect with Australian investors through clear and concise articles on key developments. Demetallica was a client at the time of publishing. All coverage contains factual information only and should not be interpreted as an opinion or financial advice.