LONDON (Alliance News) - Bushveld Minerals Ltd Wednesday said it is offering AUD0.06 a share for the 36.4% of Lemur Resources Ltd that it doesn't already own, valuing Lemur at nearly AUD10.9 million.
Buchveld, which currently has a 63.6% stake in Lemur, said the offer is a premium of 3.45% to Lemur's closing price on the Australian Securities Exchange on Tuesday. It said it has been advised that Lemur shareholders holding about 10% of its share capital intend to accept the offer within 10 business days.
"This offer, if successful, will allow Lemur shareholders the certainty of a cash exit for their shares and transfer the risk associated with developing Lemur's assets to its parent company, Bushveld Minerals. For Bushveld shareholders the offer, if successful, provides an opportunity for greater alignment of Bushveld's and Lemur's interests," Bushveld Chief Executive Fortune Mojapelo said.
Bushveld shares were up 6.2% at 4.22 pence in London Wednesday morning. Lemur Resources shares didn't trade on the ASX Wednesday, having last traded at AUD0.058.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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Bushveld Minerals (BMN)