Theta Gold Mines (ASX:TGM) - Non Executive Chairman, Bill Guy
Non Executive Chairman, Bill Guy
Source: Theta Gold Mines
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  • Theta Gold Mines (TGM) has made an off-market takeover offer to acquire all the shares on issue in Focus Minerals (FML)
  • TGM will offer 2 of its own shares for every 1 FML shares on issue, giving Focus an assumed value of 36 cents each
  • Theta has labelled the offer as “attractive” and explains the price is a 41.2 per cent discount to FML’s last closing price of 25.5 cents
  • The takeover bid comes as Shandong Gold has the opportunity to take a majority stake in Focus through a recently announced entitlement offer
  • TGM shares are steady at 18 cents each, while Focus is trading up 1.96 per cent at 26 cents per share

Theta Gold Mines (TGM) has made an off-market takeover offer to acquire all the shares on issue in Focus Minerals (FML).

The gold business will offer 2 TGM shares for every 1 FML share on issue, giving Focus an assumed value of 36 cents per security.

Theta has labelled its offer “attractive” and added that the price was a 41.2 per cent discount to FML’s last closing price of 25.5 cents.

TGM’s takeover bid comes as Shandong Gold has the opportunity to take a 66.25 per cent majority stake in Focus through a recently announced entitlement offer.

Theta Gold Mines argues a combined FML-TGM business would be a leader amongst its ASX-listed gold mining peers.

Together, a combined company would have a JORC compliant Mineral Resource of more than 12.3 million ounces (Moz) of gold.

At this stage, Focus Minerals said it was considering Theta’s takeover offer and advised its shareholders to take no action.

While Theta Gold Mines Chairman Bill Guy said he was hopeful a deal can be completed.

“Theta Gold believes that the offer presents a compelling opportunity to Focus shareholders to realise value for their shareholding while continuing to have an indirect interest in the Focus assets,” he said.

“A combination of Theta Gold and Focus would create a group with a significant presence on the ASX, operating bases in South Africa and WA, and over 12 Moz of gold resources under management.

“Focus also has numerous old mine sites in the Eastern Goldfields with good grades
and potential at depth and Theta Gold believes its experienced underground mining management team could add value to any consideration of these assets.”

TGM shares were steady at 18 cents each, while Focus was trading up 1.96 per cent at 26 cents per share at 1:46 pm AEDT.

TGM by the numbers
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