New Zealand miner Siren Gold (ASX: SNG) has rejected an unsolicited, non- binding, indicative offer (NBIO) from Federation Mining.
Federation are developing the Snowy River Gold Project (previously the Blackwater mine), which is surrounded by Siren’s Reefton Project in New Zealand.
Rejection
The Siren board has evaluated the proposal and has resolved that, on the terms presented by Federation it is not able to accept this NBIO as it currently stands.
The board declared the offer does not representd a superior proposal to the current definitive agreement with RUA Gold, which is to be voted on by Siren’s shareholders on Thursday, 17 October 2024.
Siren has appointed Morgans Corporate Limited as its corporate advisor and Steinepreis Paganin as its legal advisor.
In its proposal Federation indicated the potential to provide interim funding of up to $4.5 million for Siren, among other matters, to effect repayment of the RUA loan (of $1 million). AustralianSuper, Federation’s major shareholder, has also indicated its support in providing an underwriting commitment of up to $20 million towards the capital raise.
In mid-July 2024, Siren executed a definitive agreement with RUA Gold for the sale of the Reefton project for C$2 million cash and A$18 million in RUA shares