Eastern backs away from Windward

Eastern Goldfields has withdrawn its $6 million share subscription agreement proposal put forward to Windward Resources, following Independence Group’s $20.5 million takeover bid lodged last week.

In a statement today, Eastern said withdrawing its agreement would release Windward’s obligation to hold a meeting for shareholders to vote on approving it.

“After considering its position in light of the takeover agreement, the company gave notice to Windward having determined that it was unlikely that Windward shareholders would approve the subscription agreement,” Eastern said.

Last week, Independence offered 19 cents in cash per share to wholly acquire Windward; a 58 per cent premium to Eastern’s deal.

Independence is seeking to gain ownership of Windward’s nickel and gold portfolio in the Fraser Range, which lies in close proximity to its Nova nickel project.

Since announcing the offer, Independence acquired a 19.9 per cent stake in Windward.

Windward shares were unchanged at 18.5 cents each at 10am, while Eastern shares remain suspended from trade.