Forrestania Resources Ltd. has taken another step towards its acquisition of Zenith Minerals Ltd., confirming it has complied with all disclosure obligations mandated by the Takeovers Panel.
Forrestania said its offer remains open for acceptance until 12 November. Forrestania currently holds a controlling interest of 58.61 per cent in Zenith shares.
The company plans to take the necessary steps to declare the bid unconditional as soon as possible. Under the regulatory framework, the offer can formally be declared unconditional one week after the dispatch of the corrective documents to Zenith shareholders is complete.
Once the bid is freed of all remaining conditions, Forrestania expects to begin issuing its shares to accepting Zenith shareholders within 14 days.
Executive Chairman David Geraghty reaffirmed the rationale behind the transaction, highlighting Forrestania’s recent corporate milestones as evidence of its execution capabilities.
“Forrestania always believed that it had made a compelling offer to Zenith Shareholders,” Geraghty said.
“That belief was only strengthened when Forrestania was able to negotiate and complete the acquisition of Edna May and raise AU$310 million following announcement of the Zenith bid.”
Geraghty noted that integrating Zenith’s Consolidated Dulcie Project into Forrestania represents the best path forward for project development and value creation.
“The offer from Forrestania provides an opportunity for Zenith shareholders to exchange their interest in an early-stage gold exploration company for an interest in a company on the precipice of commencing its own gold production,” he said.
He added that the management team looks forward to freeing the bid of all conditions at the earliest opportunity, enabling patient Zenith shareholders to receive their Forrestania shares and participate in the combined group’s growth.
