Confirming media speculation, Regis Resources Limited (ASX: RRL)Ā this morning announced that it has submitted a confidential, indicative and incomplete proposal to acquire small-cap gold developer Capricorn Metals LtdĀ (ASX: CMM).
The indicative proposal contemplates an offer of 11.4 cents in Regis shares per Capricorn share, representing a premium of 93.2% to the closing Capricorn share price on Friday, September 21, 2018.
The transaction is conditional on Regis receiving the recommendation of the Board of Capricorn, the support of Capricornās major shareholders, and execution of a binding implementation agreement.
While Capricorn’s Board has confirmed that it would unanimously recommend the proposal, Capricornās largest shareholder, Hawkeās Point, has not yet been prepared to support it. Hawkeās Point holds an 18.9% interest in Capricorn.
A meeting has been scheduled this week between Regis and representatives of Hawkeās Point to determine whether its support will be garnered.
The Regis Resources share price has fallen 7% this afternoon, down 29 cents to $3.85.
Capricorn Metals has seen its share price skyrocket higher on the news, up 51% to 8.9 cents.
