(MENAFN- ProactiveInvestors - Australia) Allmine Group's (ASX: AZG) shares have taken off today, hitting an intra-day high of $0.175 â€" a 30% increase over last Friday's closing price â€" prior to the company entering a trading halt this morning.
The company has since received a price and volume query from the ASX, with 10.2 million shares traded by mid-afternoon.
Prior to receiving the ASX query, Allmine released a statement responding to media speculation on a potential takeover bid.
The Wall Street Journal published an article today on a potential acquisition proposal from Singapore-listed Civmec.
The publication reported that Civmec was in talks to acquire Allmine and that there was a deal on the table for "a scrip-based proposal that would value Allmine at more than $0.25 a share, or more than A$77 million".
Allmine responded saying it is not aware of any information relevant to the article, and has no reason to believe that the article is anything other than media speculation.
The company did confirm it has been approached by various agents in relation to establishing possible business relationships with a number of parties including Civmec, however these discussions are both preliminary and incomplete.
Allmine added that it had not had any direct discussions with Civmec.
The company responded to the ASX query, saying that other than the market reacting to the media speculation it is not aware of any explanation for the price change in Allmine shares.
A share on the rise
Allmine has seen some increased investor activity in recent weeks.
Shares have risen 75% since the low of $0.10 the company was trading at in early October.
Allmine recently marked its first full financial year as an ASX-listed company and its fifth straight year of revenue and profit growth.
The company's project alliance partners include China Metallurgical Group Corporation (MCC) and China Non-Ferrous Metal Industry's Foreign Engineering Construction Co (NFC).
MCC is one of the largest equipment manufacturers in China with a market cap. of A$5.1 billion, while NFC is one of China's leading construction and engineering groups with a market cap. of $2.2 billion.
At 30 June 2012, the company's order book stood at $141 million, with Allmine anticipating 20% to 30% sales growth in the 2013 financial year.
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