23/06/2015 - 10:09

Phoenix, Evolution alliance in limbo

23/06/2015 - 10:09

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Phoenix Gold has taken a planned vote on an alliance with Evolution Mining off the agenda of its general meeting, being held today, after Zijin Mining Group made a play to take ownership of the company in a cash deal worth $47 million.

Phoenix, Evolution alliance in limbo

Phoenix Gold has taken a planned vote on an alliance with Evolution Mining off the agenda of its general meeting, being held today, after Zijin Mining Group made a play to take ownership of the company in a cash deal worth $47 million.

Phoenix Gold stakeholders have gathered in West Perth to vote on three resolutions, however just hours before the meeting was due to start, the company removed Resolution Two – Approval for issue of tranche two shares and strategic alliance with Evolution.

“As a result, all rights and obligations between Phoenix and Evolution with regards to the issue of tranche two shares, including seeking shareholder approval, have discontinued,” Phoenix said.

“Other agenda items for the meeting remain unchanged and will be put to shareholders for approval.”

Evolution will retain its 9.3 per cent shareholding in Phoenix.

Zijin announced its intention to make an off-market takeover offer for all of the shares it doesn’t already own in Phoenix at a cash price of 10 cents per share, in an attempt to counter Evolution Mining’s plan to increase its shareholding to 19.9 per cent.

Shares in Phoenix were 4.5 per cent lower to 10.5 cents each at 10am.

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