Finders Resources Ltd., in its Dec. 5 target statement, recommended that shareholders reject the "inadequate and opportunistic" takeover offer from Indonesian consortium Eastern Field Developments Ltd.
The cash offer of 23 Australian cents per Finders share, which was announced in October, officially opened Nov. 20 and is backed by Finders shareholders Procap Partners Ltd. and PT Saratoga Investama Sedaya Tbk.
According to Finders, the offer does not reflect its fair value, which is estimated to be in the range of 31 cents per share to 35 cents per share, and is opportunistic now that its Wetar copper project in Indonesia places the company in a position to generate free cash flow, being constructed and ramped up to nameplate capacity.
The bid does not factor in the strong copper price environment, Finders added, noting that the offer remains conditional and accepting it may deprive shareholders of the opportunity to receive greater value for their stakes through other means, such as a superior offer or by selling on the market.
Eastern Field's takeover offer is scheduled to close Dec. 20, unless extended or withdrawn.
Meanwhile, an updated resource estimate for the Lerokis deposit within Finders' Wetar operations recently increased contained copper by 34%, or 20,800 tonnes, to 81,800 tonnes of copper contained within 2.9 million tonnes of ore grading 2.80% copper in the measured, indicated and inferred categories. Finders is looking to develop Lerokis as Wetar's second open pit mine.
