Finders Resources has received a letter from Eastern Field Developments Ltd stating its intention to make an off-market takeover offer for all of the shares in Finders. Eastern Field is a consortium comprising Indonesia’s PT Saratoga Investama Sedaya and PT Merdeka Copper Gold along with Singapore private equity firm Provident Capital Partners.

The offer values the Australian-based company that operates the Wetar Copper Project in Indonesia at almost A$178 million. The consortium announced its intention to price the offer at A$0.23 per share, which represents a 9% premium to Finders’ three month volume weight average price of A$0.21, and a 92% premium to the equity raising price of A$0.12 late last year.

In a statement released on October 6, Finders said that its directors would consider the terms of the proposed offer, and the content of the bidder's statement and would advise shareholders of their recommendation in due course. In the meantime, it said shareholders were advised to take no action in relation to the proposed offer.

The Eastern Field consortium has an interest of around 19.8% in Finders. Through its unit Provident Minerals, Provident has been an investor of Finders since 2012, helping the ASX-listed company navigate Indonesian regulations. Provident also introduced Saratoga as a shareholder in 2013.

Eastern Field director David Fowler was quoted by Stockhead as saying, “Provident and Saratoga have determined their existing interest in Finders is too small in the context of their collective portfolios. This offer enables them to materially increase their shareholding in Finders.”

Finders last week released an update on drilling activities at the Lerokis deposit, which is intended to be the second open pit at Wetar.

Further high-grade copper mineralisation was intersected in the RC holes drilled into the more complex areas of Zone 1S and Zone 5, including an area the previously contained no modelled copper mineralisation.

Closer spaced drilling also confirmed continuity of a high-grade zone previously defined by isolated high grade intercepts.

Best Zone 1S results were: 22 metres from 9 metres @ 13.33% copper, 1.21 g/t gold, 74.5 g/t silver, 1.52% zinc and 0.66% lead, including 13 metres @ 21.81% copper, 1.64 g/t gold, 107.9 g/t silver, 1.27% zinc and 0.84% lead; and 25 metres from 5 metres @ 7.29% copper, 0.75 g/t gold, 34.2 g/t silver, 1.14% zinc and 1.33% lead.

Best Zone 5 results were: 24 metres from 18 metres @ 6.32% copper, 2.03g/t gold, 162 g/t silver, 7.15% zinc and 2.01% lead; and 22 metres from 28 metres @ 5.65% copper, 1.59 g/t gold, 76.2 g/t silver, 1.81% zinc and 0.62% lead.

Finders’ managing director Barry Cahill said, “These impressive results were from the Lerokis pre-development drilling program required to finalise the pre-mining mineral resource and ore reserve estimate for the company’s second open pit mine at Wetar.

“The high grade assay results indicate good potential for increasing the contained copper metal above that previously reported for the deposit. Mine development and infrastructure planning for Lerokis is now at an advanced stage.

Resource Center Whitepapers, Videos, Case Studies

Conferences & Events

No events