Focus Minerals Ltd. will pursue a counter proposal from Horizon Minerals Ltd. for the sale of its Coolgardie gold project in Western Australia.
The counter proposal includes a total cash consideration of A$52 million payable over 12 months, extension of the exclusivity period for a further 60 days, and the possible requirement for Horizon to replace the environmental bonds by the Department of Mines, Industry Regulation and Safety.
This comes shortly after the board was planning on pursuing an A$55 million third-party unsolicited offer that was considered more superior to the Horizon offer, in response to which Horizon elected to exercise its matching right under the exclusivity deed and submitted a revised nonbinding indicative proposal to Focus.
The company added Oct. 21 that the proposed transaction remains subject to formal binding written documentation and obtaining necessary approvals, so there is no assurance that the sale of Coolgardie will proceed.
In September, Focus determined that China Hanking Holdings Ltd.'s nonbinding indicative offer to acquire the Coolgardie was not a superior proposal against Horizon's bid.