The Tony Sage-chaired Cauldron Energy has made an off-market, all-scrip takeover bid for uranium explorer Energy Minerals, valuing the target at just under $6 million.
Cauldron announced today it would offer one of its shares for every eight Energia shares, equating to a 3.4 cents per share value.
The offer price is a 29 per cent premium to Energia’s five-day volume weighted average price.
If the bid is successful, the new entity will own a contiguous tenement package over 190 kilometres in the Carnarvon Basin, in an area considered to be highly prospective for uranium.
The tenements have combined uranium resources of 32.4 million pounds of uranium.
“Our bid for Energia rests on our confidence that we are on the verge of defining a major new uranium province in the Carnarvon Basin, and that both Cauldron and Energia have huge exploration and corporate synergies,” Mr Sage said in a statement.
“We feel this region has the potential to host a globally significant in-situ leach uranium operation.”
Energia Minerals’ board of directors instructed shareholders to take no action in relation to the offer, while it considers the bid.
At close of trade today, Energia shares were up 0.8 cents, to finish at 3.4 cents, while Cauldron’s stock put on 1 cent, closing at 28 cents.