Regis Resources has withdrawn its $85.3 million takeover proposal for Capricorn Metals, after the gold aspirant’s largest shareholder, Hawke’s Point, rejected the indicative deal.
The gold miner aproached Capricorn with a confidential all-scrip takeover proposal last week, which valued Capricorn at 11.4 cents per share, a 93 per cent premium on its closing price.
Capricorn’s board had unanimously supported the proposal, however, US investor Hawke’s Point did not support the deal.
“Regis yesterday notified Capricorn that one of Capricorn’s key shareholders has advised that it will not support Regis’s proposal and, accordingly, Regis has decided to withdraw the proposal and cease discussions with Capricorn,” Capricorn said in a statement to the ASX this morning.
“Regis has also advised that, while it has no intention to initiate further discussions, it reserves its right to make a further proposal in relation to Capricorn in the future.
“The board of Capricorn will continue to engage with the key shareholder that did not support the Regis proposal to seek clarity on its intentions in relation to its investment in Capricorn.”
Other major shareholders, Nedlands Nominees and Centrepeak Resources, had indicated they would support the proposal.
Capricorn is focused on developing its Karlawinda project in the Pilbara, which has a capital cost of $133 million.
The company released a feasibility study last year and is currently finalising the debt component of the project funding.
Shares in Capricorn had fallen 13.58 per cent to 7 cents each at 12pm AEDT.