(MENAFN- ProactiveInvestors - Australia) AusNiCo (ASX:ANW) takeover target Taronga Mines independent directors have unanimously recommended the proposed merger of the two companies.
The merger, once completed, will create a company with a foundation of base meals assets including the world class Taronga Project in northern New South Wales.
The independent directors of Taronga said there was a compelling commercial rationale for the transaction as it offered target shareholders a 20% premium to the last capital raising price of Taronga at $0.10 per share.
It also gave them access to the broader capital market as well retain exposure to the Taronga project. It also provided the target shareholders a listing event for their Taronga shareholdings in an equities market that has been difficult for IPOs.
Earlier this month, AusNiCo and Taronga Mines had announced a proposed merger under which Taronga shareholders were being offered 5 AusNiCo shares for each Taronga share they held.
The offer is subject to conditions including a minimum of 90% target shareholder acceptance.
AusNiCo is focused on exploration and development of nickel- cobalt mineral deposits in South-East Queensland and Tasmania.
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