Conquest plans North Qld Metals takeover

Conquest Mining Limited has announced plans for a $58 million takeover of North Queensland Metals.

Conquest will offer North Queensland Metals shareholders 0.5 of a Conquest share plus 10 cents cash for every North Queensland Metals share held, valuing the company at about $0.29 per share.

In a statement Conquest said the offer represented a substantial and attractive premium of 29 per cent to North Queensland Metals closing price yesterday and 37 per cent to the volume weighted average price of North Queensland Metals on ASX for the month prior.

Conquest said North Queensland Metals major shareholder is supportive of the offer and has entered into a pre-bid acceptance agreement with Conquest covering a 19.9 per cent shareholding.

North Queensland Metals has a 60 per cent interest in and is the manager of the Pajingo Gold Mine near Charter Towers.

Conquest has a 100 per cent interest in the nearby Mt Carlton gold-silver-copper project, near Townsville.

Conquest Executive Chairman, Jake Klein, said, "The combined company will be better places to increase the exploration expenditure at Pajingo and attract and retain high quality people."

"North Queensland Metals shareholders will benefit initially from the significant up-front offer premium and are expected to benefit over the longer term as value in unlocked by combining the complementary assets and capabilities of Conquest and North Queensland Metals," Mr Klein said.

Conquest's offer will be conditional on Conquest obtaining at least 90 per cent of North Queensland Metals shares.

The company's shares were 4.5 cents higher at 27 cents at 1428 AEST on Thursday. Conquest was 1.5 cents lower at 36.5 cents.