Shandong fends off Theta takeover

Major Focus Minerals shareholder Shandong Gold has raised its stake in the WA explorer to some 63 per cent, squeezing out Theta Gold Mines as a potential buyer.

Theta propositioned Focus shareholders, which includes China-based mining giant Shandong Gold, with a two-for-one share exchange in December last year.

Theta’s play for Focus was timed shortly after the company said it planned to resume gold mining operations at its Coolgardie gold project, which has been on care and maintenance since 2013.

In all, it valued Focus at around $65 million.

Theta’s proposal was subject to Focus not proceeding with a planned $45 million entitlement offer to fund the restart, which it elected to push ahead with regardless swiftly after the offer was made.

Theta then took up a substantial holding in Focus on December 20, acquiring around 1.8 million shares for a 1 per cent slice of the company.

But Shandong has since eclipsed Theta’s holding, upping interest from just shy of 50 per cent to 63.18 per cent via the entitlement offer on December 23.

Focus fell substantially short of the $45 million it had planned to raise however, instead garnering about $25.5 million with Shandong taking up some 90.5 million of the 102 million shares issued.

In an accompanying statement, Focus said that no scale back would be required “given the level of acceptances” and those who subscribed for additional new shares in excess of their entitlement will be issued shares they applied for.

Theta has not indicated as to whether it plans to make another move for Focus.

Focus shares are down 14 per cent to trade at 34 cents.

Theta last traded at 15 cents.