(Alliance News) - Ascent Resources PLC and Amur Minerals Corp on Tuesday both acknowledged Amur's ending of discussions over a prospective takeover by Ascent.
Ascent, the European and Hispanic American project-focused oil and gas exploration and production company said it was "surprised and disappointed".
It claimed the last communication between both parties was three weeks ago, when Ascent confirmed its forward process and timetables to achieve the possible combination, waiting for the Amur board to engage further on the proposal.
Amur is a Russia-focused nickel copper sulphide exploration company.
Ascent said it was still "exploring the possibility" to put forward a binding offer to the shareholders for the issued and to be issued share capital of Amur.
"Given that Ascent is expecting imminently the result of its EUR3.5 million-plus arbitration claim against its joint-venture partner in Slovenia, Ascent still believes that a combination of the two companies would be in the interest of both shareholder groups," Ascent said.
In early June, Amur noted Ascent's possible takeover bid, indicating an all-share deal of one new Ascent share for every 21 Amur shares valued, at the time of the announcement, at 0.175 pence per share, plus a 1.8p dividend.
Under the proposal, Amur shareholders would have owned 29% of the enlarged company, with Ascent shareholders owning the remaining 71%.
But Amur said at the time it had been "restricted in its ability" to advance discussions with potentially interested parties while in the process of selling its Kun-Manie nickel copper project in Russia. The sale was completed in March for USD35 million, or GBP27.9 million.
Shares in Ascent Resources were down 4.4% to 3.25 pence each in London on Tuesday late morning, while Amur was down 10% to 0.16p each.
By Greg Rosenvinge, Alliance News reporter
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Ascent Resources (AST)
Amur Minerals (AMC)