The Board of Azumah Resources Limited (ASX: AZM) has told shareholders to take no action on an unsolicited off-market cash takeover offer made on behalf of Ibaera Capital Fund GP Limited for all the shares in the company not already owned by Ibaera.
Azumah announced an original transaction with Ibaera, a private equity fund, in relation to the +1Moz Reserve Wa Gold Project in August 2017.
A representative of Ibaera was appointed as Project manager, and since then the parties have worked to progress the Project towards completion of a Feasibility Study in early 2020 and a development decision.
Ibaera has recently made non-binding proposals to Azumah to acquire Azumah’s interest in the Project and subsequently to acquire Azumah via a scheme of arrangement.
Azumah has responded requesting additional time to formulate its response.
The Azumah Board stated that it considers the Offer to be highly opportunistic, particularly given recent strength in the gold price, the pending Feasibility Study on the Project and the upside potential from the underground discovery at Bepkong identified this year.
The Board of Azumah is now reviewing the unsolicited Offer and Ibaera’s Bidder’s Statement.
Azumah has appointed Azure Capital as corporate adviser in relation to the Offer.
