(Alliance News) - Ascent Resources PLC on Thursday said it wants to buy fellow London listing Amur Minerals Corp in an all-share deal.
The announcement by Ascent follows "a period of protracted discussions with the board of Amur", it said. Amur released no immediate response statement on Thursday afternoon in London.
Ascent is a Latin America and Europe-focused energy and natural resources company. Amur is a Russia-focused nickel copper sulphide explorer.
Ascent Resources shares rose 10% to 3.92p each on Thursday, while Amur Minerals shares plummeted 88% to 0.22p each.
The all-share offer of 1 new Ascent share for every 21 Amur shares valued Amur - at the time of the announcement - at 0.175p per share plus a 1.8p dividend. This would be a premium of 7.3% to Amur's closing price of 1.840p on Wednesday.
Further, Ascent said Amur could profit from Ascent's claim against the government of Slovenia.
Ascent back in August submitted a request for arbitration against the country, which includes an updated preliminary damages assessment in excess of EUR500 million, after the closure of a "no win - no fee" style funding arrangement in May last year.
Under the proposal, Amur shareholders would own 29% of the enlarged company, with Ascent shareholders owning the remaining 71%.
Ascent cautioned that there is no certainty that a binding offer will be made.
By Tom Budszus, Alliance News reporter
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