(ShareCast News) - Metal Tiger, an AIM listed natural resources focused investing company, announced that it had received an indicative offer from Berkeley Mineral Resources (BMR) Group.
BMR, a mining company that processes Lead and Zinc at Kabwe Mine in Zambia, has offered 0.231 of its shares for every one share in Metal Tiger's stock.
The group's independent directors, Terry Grammer and Jordan Luckett, have however notified BMR that they will not be recommending the Indicative Offer to the company's shareholders as they believe it fundamentally undervalues the company.
The directors referred to the group's announcement earlier this month about its joint-venture project with MOD resources in the Kalahari copper belt in Botswana. The company said that MOD resources expects to announce the results of scoping the study for potential open pit mining operation at T3 to be completed and announced during November 2016.
Synergies between the two companies have however been recognised and should an improved indicative offer be received from BMR the directors say they are willing to enter into negotiations with BMR, after the results of the scoping study have been announced.
The directors received financial advice from SPARK advisory partners limited on the terms of the indicative offer.
The share price rose 4.36% to 2.04p at 1229 GMT on Monday.