AIC in takeover deal

Joseph El-Raghy-led AIC Resources has agreed to a reverse takeover deal with NSW-based Intrepid Mines.

Under the deal, Intrepid is offering one share for every three AIC shares held.

Following completion, Perth-based AIC will hold 64 per cent of the combined entity, while Intrepid will own 36 per cent of the company.

The new entity will hold about 3,200 square kilometres of land in Western Australia in the Plutonic and Marymia regions, which are prospective for gold and base metals.

“This is a compelling offer for AIC shareholders as this transaction will provide an even stronger platform to continue AIC’s exploration efforts,”AIC chairman Mr El-Raghy said.

“The combined entity will hold a dominant contiguous land position in the underexplored Plutonic and Marymia region.”

Mr El-Raghy will remain as chairman of the new company, while AIC chief executive Brett Montgomery will also remain in the same position.

Intrepid directors Richard Baumfield and Tony Wolfe will be non-executive directors of the combined entity.

"The combination of AIC and Intrepid represents a compelling value proposition for shareholders of both companies,” Mr Baumfield said.

“The combined company will be in a strong position with strong management, quality assets and a significant cash balance which will allow for the ongoing exploration activities in the Marymia area.”

The deal remains subject to a number of conditions, including regulatory and shareholder approval.

AIC has appointed Allen & Overy as legal adviser and Fivemark Partners as financial adviser.

Shares in AIC finished up 8.82 per cent at 18 cents each today.