Resource News

Nyrstar puts itself back in the takeover race for CBH Resources

Late last month it looked like major CBH Resources Resources Ltd (ASX: CBH) shareholder Toho Zinc had won the hearts of independent directors and the market by outbidding Nyrstar but over the weekend the company received a fresh bid from Nyrstar.

Nyrstar’s new proposal could lead to a takeover offer for the company being made at A19.5 cents per share and A$1,000 per CBHGA convertible note but CBH Resources said the new proposal is subject to certain preconditions, including a request to complete limited scope, confirmatory due diligence.

Directors of CBH who are independent of Toho have approved Nyrstar’s request and this process has now commenced.

The conditions foreshadowed by Nyrstar include that the resolutions to be considered by the meeting of CBH shareholders scheduled for April 28 be not approved or be withdrawn prior to the meeting.

CBH Resources operates the Endeavour zinc-lead-silver-copper mine near Cobar and has the advanced Rasp decline underground development on rich un-mined sections of its central mining lease in the heart of Broken Hill’s famous Line of Lode in far western New South Wales.

The company also owns a shiploader at Newcastle in NSW and has the advanced Panorama polymetallic project in Western Australia.

In late March major shareholder Toho Zinc countered Nyrstar’s first bid with an offer to all other CBH Resources shareholders at A25c per share.

Back then Mineweb reported that Toho, which currently holds a 24.1% stake in the company and is a holder of 50.6% of the company’s convertible notes said it would support a Nystrar takeover.

Earlier Toho had offered to acquire a 50% stake in the Rasp mine…read more at the Mineweb