LONDON (Alliance News) - Bushveld Minerals Ltd Friday said Lemur Resources, in which it holds a 63% stake, has recommended its shareholders accept Bushveld's takeover offer for the company, and also said it is holding talks about potentially acquiring vanadium assets in South Africa.
Lemur Resources, which is listed on the Australian Securities Exchange, said Friday its shareholders should accept Bushveld's offer "in absence of a superior proposal". Bushveld has made an offer of AUD0.06 per Lemur share.
Lemur said the company, and the independent report on the takeover offer, is "not fair" but is "reasonable", adding it understands why some shareholders might choose to reject the offer.
Earlier Friday, Lemur said it was also in talks about acquiring a South African company which holds three greenfield properties in the north west of the country.
The company it is set to purchase has not been named but Lemur said it has entered into a loan agreement, whereby it has loaned the company around AUD213,000 for immediate working capital. That loan will be offset by the purchase price should the deal go ahead, said Lemur.
Bushveld shares closed down 3.1% to 3.95 pence per share on Friday.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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Bushveld Minerals (BMN)