More claims in Metalicity takeover bid

Perth Airport-based Metalicity has stepped up its pursuit of Tom Percy-led Nex Metals over outstanding payments it claims it’s owed as part of a takeover bid.

In an ASX notice posted yesterday, the federal government Takeovers Panel ordered Nex Metals to pay part of the costs of Metalicity in the order of $15,000 within 10 business days.

According to the notice, the payment represents the fair and reasonable costs incurred by Metalicity in connection with the proceedings.

It comes two weeks after Metalicity took to the federal court claiming Nex Metals managing director Kenneth Allen owed the company $50,000 in external costs relating to an independent expert report.

The payment is allegedly stipulated within orders made by the panel on December 17.

In addition, Metalicity is also demanding Mr Allen cover any costs associated with the federal court action.

Metalicity and Nex Metals entered into a joint venture agreement in mid-2019, with Metalicity spending $5 million on exploring Nex’s Kookynie and Yundamindra gold projects located close to Leonora.

Metalicity met the cost and had 51 per cent controlling interests in the assets.

It sought to consolidate ownership of both projects and announced in September its intention to bid for all of the ordinary shares in Nex Metals, offering 4.81 Metalicity shares for every 1 Nex Metals share.

The off-market takeover bid proposal would acquire at least 90 per cent of Nex’s issued capital in an all-scrip deal, valued about $12.8 million.

Nex Metals announced on ASX the same day of Metalicity's proposal for its shareholders to take no action while it evaluates and assess the terms of Metalicity's offer.

In October, Nex Metals issued an ASX statement that its directors’ unanimous recommendation was for Nex’s shareholders to reject the bid due to lack of information.

The panel found that Nex's statement contained material information deficiencies and ordered the company to prepare a replacement target statement to be accompanied by an independent expert report.

According to the panel’s orders, Metalicity may engage an expert to produce an independent report to be sent to Nex’s shareholders if Nex Metals has not lodged its own by the deadline.

The panel ordered Mr Allen, Mr Percy and Nex Metals’ non-executive director Hock Hoo Chua to pay the external costs of Metalicity’s independent expert report, jointly and severally up to an amount of $50,000.

Metalicity issued an independent expert report on May 11 that was of the opinion its offer for Nex Metals was fair and reasonable.

The panel also received an application from Nex Metals on Wednesday, which claims Metalicity's bid statement in September was "materially outdated" and should be revised.

"A sitting panel has not been appointed at this stage and no decision has been made whether to conduct proceedings," the panel said in its statement.