Diatreme puts Metallica takeover bid on the table

Diatreme Resources has announced its intention to make a takeover bid for fellow Far North Queensland silica sand developer Metallica Minerals. Diatreme chief executive officer Neil McIntyre said the acquisition aligned with Diatreme’s strategy of building a world-class asset portfolio of high-purity silica deposits of regional significance and scale. "This is a regional consolidation of proximate, significant, high-quality silica assets in the Cape Flattery region, providing the opportunity for sensible progressive project planning, permitting and implementation, whilst further broadening available export optionality within Cape Flattery regionally," he said. If the offer is successful, it would create a leading ASX-listed silica company with a pro-forma market capitalisation of about $110 million and a significant combined mineral resource base. The Diatreme Northern Silica Project (NSP) and Metallica’s Cape Flattery Silica Project (CFS) each have been designated as co-ordinated projects by the State Government. Diatreme plans to offer Metallica shareholders 1.3319 fully paid ordinary shares in Diatreme for every ordinary share held in Metallica. It says Sibelco Asia Pacific - which holds a 16.43 per cent stake in Metallica - is agreeable to the offer subject to Diatreme having obtained the ASIC modifications required to proceed. Diatreme chairman Wayne Swan said the company intended to put its offer directly to Metallica shareholders on the basis that it represented a compelling opportunity for the shareholders of both companies. "We are grateful for the early support shown for this offer by Sibelco Asia Pacific, a major shareholder of both Metallica and Diatreme," he said. "This proposed transaction is a logical step in ensuring the shareholders of both companies will see the benefits of a focused silica development company optimising resources, capital expenditures, staffing, regional engagement and export solutions. "This is expected to see us create value for the shareholders of both companies, as well as external stakeholders such as traditional owners, local business and the broader Cooktown and Hopevale communities. "The Queensland Government has identified Cape Flattery as a critical minerals mining area and export hub of significance. "Unlocking the potential for the region’s contribution to the continued decarbonisation efforts is paramount and at the forefront of all advanced economies as we plan a greener future for all generations. A combined Diatreme and Metallica is expected to see them contribute significantly to these initiatives.” Below: Regional setting of Diatreme and Metallica projects, alongside Mitsubishi's operating Cape Flattery Silica Mines site (in pink).

Diatreme puts Metallica takeover bid on the table

Industry Queensland

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