Gindalbie Metals provides March quarter update

Gindalbie Metals provides March quarter update

Gindalbie Metals (ASX: GBG) spent the March quarter finalising a proposal to be acquired by Ansteel, in a transformative agreement that will coincide with the company demerging its wholly-owned subsidiary, Coda Minerals (owner of the highly prospective Mt Gunson copper-cobalt project in South Australia) to Gindalbie shareholders.


Gindalbie Metals (ASX: GBG) spent the March quarter finalising a proposal to be acquired by Ansteel, in a transformative agreement that will coincide with the company demerging its wholly-owned subsidiary, Coda Minerals (owner of the highly prospective Mt Gunson copper-cobalt project in South Australia) to Gindalbie shareholders.

HIGHLIGHTS

·       On 11 March 2019, Gindalbie Metals Limited (“Gindalbie”) (ASX: GBG) announced a proposal to be acquired by Angang Group Hong Kong (Holdings) Limited (“Ansteel”) for cash consideration of $0.026 per Gindalbie share (“Acquisition Scheme”).

·       The Acquisition Scheme consideration is priced at a 90% premium to Gindalbie’s 30‐day pre‐announcement VWAP and allows Gindalbie shareholders to exit their exposure to Gindalbie's significant contingent liabilities relating to the loss‐ making and capital‐intensive Karara Iron Ore Project (“Karara”).

·       The Acquisition Scheme is proposed to occur alongside a proposed inter‐conditional demerger by Gindalbie of its wholly owned subsidiary, Coda Minerals Limited (“Coda”), to Gindalbie shareholders (“Demerger”).

·       Coda holds Gindalbie’s interest in the highly prospective Mt Gunson Copper‐Cobalt Project in South Australia (“Mt Gunson”).

·       Gindalbie’s Directors (excluding Ansteel’s representatives) (“Independent Directors”) unanimously recommend that Shareholders vote in favour of the Acquisition Scheme and the Demerger, in the absence of a superior proposal and in each case subject to the Independent Expert concluding that the relevant transaction is in the best interests of Gindalbie shareholders.

·       Scheme Booklets relating to the Acquisition Scheme and the Demerger are expected to be released and sent to Gindalbie shareholders in late May.

·       Subsequent to quarter‐end, Gindalbie received results from 2018‐19 drilling program at Emmie Bluff, at Mt Gunson, including:

·       2.05m @ 1.51% Cu, 0.07% Co from 399.2m;

·       3.12m @ 1.14% Cu, 0.08% Co from 393.66m; and

·       1.7m @ 1.28% Cu, 0.05% Co from 443.3m.

·       As at 31 March 2019, Gindalbie had term deposits of $29.6 million, and cash equivalents of $1.99 million.

Strong balance sheet facilitates 2018 R&D loan repayment: Northern Minerals

Strong balance sheet facilitates 2018 R&D loan repayment: Northern Minerals

Northern Minerals bolsters balance sheet during March quarter

Northern Minerals bolsters balance sheet during March quarter