(Alliance News) - Shanta Gold Ltd shares fell on Monday as its two remaining suitors decided against making a bid for the company.
Shares in the east Africa-focused gold producer, developer and explorer fell 12% to 9.50 each in London on Monday afternoon.
Shandong Gold Group Co Ltd and London-listed Chaarat Gold Holdings Ltd have informed Shanta they do not intend to make an offer for the firm.
The announcements came after Yintai Gold Co Ltd, another possible buyer, earlier in November also opted against making an offer.
Chaarat on Monday said it was unable to reach an agreement with Shanta on a valuation for the deal.
Shanta said: "The board continues to believe in the strength of Shanta's business and the potential of its portfolio and that sensible consolidation in the junior mining sector can be beneficial in managing risk and optimising allocation of investment capital. However, the board is also clear that it will not accept an offer or deal structure that does not deliver value for shareholders. Accordingly, after further engagement and having taken advice from its financial advisors, the board has concluded that there is no merit in continuing discussions with Shandong and Chaarat, which both parties have accepted.
"Shanta remains focused on optimising and growing its quality portfolio to continue to deliver long-term sustainable returns for shareholders with a number of value catalysts in train for 2023."
Charaat shares were untraded in London on Monday, last quoted at 10.68 pence.
By Greg Rosenvinge; gregrosenvinge@alliancenews.com
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Shanta Gold (SHG)
Chaarat Gold (CGH)