September 30, 2016 02:01 ET
CALGARY, ALBERTA--(Marketwired - Sept. 30, 2016) - Bacanora Minerals Ltd. ("Bacanora" or the "Company"), the Toronto and London listed (TSX VENTURE:BCN) (AIM:BCN) company focused on developing the Sonora Project ("Sonora" or the "Project") in Mexico into a world class lithium carbonate operation, announces that it has received an unsolicited non-binding indicative proposal (the "Proposal") from Rare Earth Minerals plc ("REM"), an AIM listed investment vehicle with a 19.8% holding in the Company. The Proposal envisages an all-share merger of Bacanora and REM with REM acting as the acquiring entity (via a reverse takeover) and issuing newly issued REM shares to Bacanora's shareholders. The merger exchange ratio proposed by REM is between 135 and 141 REM shares for each outstanding Bacanora share (the "Proposed Offer"). The Board of Bacanora strongly rejects the Proposal believing it significantly undervalues the Company and jeopardises Sonora's development path to production.
Below, the Board summarises its view of the potential business combination and its rationale for rejecting the Proposed Offer:
In addition, the Board believes that:
The Board also notes REM's vote against the proposed re-domicile of Bacanora to the UK, which is widely viewed to be in the best interest of all the Company's shareholders, at the General Meeting held on September 28, 2016.
Bacanora interim Non-Executive Chairman James Leahy said, "The Proposed Offer is opportunistic and materially undervalues Sonora. The Bacanora team has made excellent progress in successfully de-risking and advancing Sonora, and at the same time has successfully raised capital from blue chip institutions, who are fully supportive of progress made to date and management's ability to deliver Sonora as the world's next major lithium mine. In our view, as well as undervaluing the Company, the Proposed Offer has the potential to impede the project's development going forward."
Macquarie Capital (Europe) Limited is acting as Financial Adviser to Bacanora with respect to the proposal from REM.
Bacanora is a Canadian and London listed minerals explorer (TSX VENTURE:BCN) (AIM:BCN). The Company explores and develops industrial mineral projects, with a primary focus on lithium and borates. The Company's operations are based in Hermosillo in northern Mexico and it currently has two significant projects under development in the state of Sonora. The two main assets of Bacanora are:
Bacanora Minerals Ltd.Peter SeckerCEOinfo@bacanoraminerals.comCairn Financial Advisers LLP, NomadSandy Jamieson/Liam Murray+44 (0) 20 7148 7900Numis Securities Ltd, BrokerJohn Prior/James Black/Paul Gillam+44 (0) 20 7260 1000St Brides Partners, Financial PR AdviserFrank Buhagiar/ Elisabeth Cowell+44 (0) 20 7236 1177Macquarie Capital (Europe) Limited, Corporate AdviserRaj Khatri+44 (0) 20 3037 2000
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