Diatreme takeover bid hits snag

Wayne Swan’s Diatreme Resources has hit a major snag in its takeover bid for rival silica sands operator Metallica Minerals with talk the offer will have to be sweetened.

Diatreme Resources, chaired by former Treasurer Wayne Swan, has hit a major snag in its takeover bid for rival silica sands operator Metallica Minerals.

There has been radio silence from Metallica since the bid was lobbed earlier this month, adding to speculation Diatreme will have to sweeten its offer substantially to get it over the line. Metallica shareholders will receive 1.3319 fully paid ordinary shares in Diatreme under the all-scrip offer, a 37 per cent premium to its 30 day trading average.

But price is not the only problem facing the bid. Diatreme has told the ASX that both companies entered into a “standstill” undertaking last year October, which restricted its ability to acquire any shares in Metallica. That undertaking was linked to an early attempt by Diatreme to kick the tyres on Metallica, which owns an adjacent silica sands project at Cape Flattery in North Queensland. Diatreme will either have to obtain the written consent or a waiver from Metallica before it can advance the takeover offer, it told the ASX.

Diatreme CEO Neil McIntyre

The deal would create one of the world’s largest silica mines amid surging demand for the raw material used in solar panels, computers and phone screens.

But it is understood the offer has underwhelmed Metallica, which has put a lot of expensive ground work into progressing its project, including environmental and feasibility studies as well as having the best option for a jetty to get the stuff onto ships.

Swan says the bid represents a compelling opportunity for the shareholders of both Metallica and Diatreme. Diatreme chief executive Neil McIntyre says the takeover makes sense and that a combined operation would have a bigger voice to government and stakeholders. However, Metallica has advised shareholders to take no action pending a formal response from the board. As the offer is all-scrip, Metallica says it will be analysing Diatreme’s assets and at the same time engage with other interested parties

Meeting of the mines

Early preparations are being made for the second annual Meeting of the Mines in Cloncurry. The three-day industry conference from September 11-13 focuses on the future of the mining industry in the region with the inaugural event last year featuring Evolution Mining boss Lawrie Conway  detailing the $1 billion investment into the Ernest Henry copper-gold mine, South 32 chief operating officer Jason Economidis focusing on creating long-term stakeholder prosperity, and Strike Energy director and former Metals Acquisition Limited chair Neville Power outlining mining investment in the North West.

True North Copper's Cloncurry mine.

Indian express

Redland City Council’s recent trade delegation to India to explore trade and export opportunities has resulted in local media labelling the city a “premier investment hub”.

The delegation, which included representatives from five Redlands Coast businesses, visited two major international trade events as part of the tour.

Covering the trade events, numerous Indian media outlets, both online and print, including The Free Press Gujarat and Western Times reported that Redlands Coast was emerging as a premier investment hub. Among the local businesspeople on the delegation were SupplyAus co-founder Adam Williams, Brisbane Alarm Monitoring Security Services chief executive Virginia Tobias, Star Promotional Products’ Ram Mohan and Tradeinsafe founder Muthukannan Paulvannan.