Takeover target Hannans Reward says it will refocus its funds and efforts towards exploration after suitor Fox Resources decided to withdraw its offer.
Yesterday, Fox announced it will let its all-scrip takeover offer to lapse on July 10, conceding it will be unable to acquire a minimum interest of 90 per cent.
Fox said it is likely that Hannans' directors, who together hold around 16 per cent, will not accept the offer and Hannans agreement to hand control of the Queen Victoria Rocks project to Vale Inco should there be a change in ownership of the company would breach takeover conditions
Fox added it will instead focus on unlocking value in its projects including the Radio Hill nickel mine and Mt Oscar iron ore project.
The company has applied to the Australian Securities and Investments Commission to withdraw the takeover offer, which will result in Fox relinquishing its 19.6 per cent interest.
Shares in Fox climbed one cent to 14c while shares in Hannans were unchanged at 8.5c at 11:19 AEST.