Business
Intention to bid for Amur Minerals Corporation
Intention to bid for Amur Minerals Corporation.
About this update from Ascent Resources Plc
[{"type":"text","content":"\n\nThis announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended (\"MAR\"). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain. \n \n1 June 2023\n Ascent Resources plc\nIntention to bid for Amur Minerals Corporation\n \nThe board of directors of Ascent Resources Plc (\"Ascent\" or, the \"Company\"), the European and Latin American focused natural resources company, is pleased to announce their intention to bid for the entire issued and to be issued share capital of Amur Minerals Corporation (\"Amur\" or, the \"Target Company\") following a period of protracted discussions with the Board of Amur. \n \nAscent's vision is that Ascent and Amur would combine to form a larger, well funded and more liquid, entity combining Amur's cash (post the recently announced asset sale and subsequent dividend) with Ascent's ESG Metals project pipeline in LATAM, which typically have low geological risk and near term and sustainable cashflows, in addition to the significant upside exposure of Ascent's funded EURO 500+ million Energy Charter Treaty damages claim (the \"Potential Combination\"). \n \nAscent submitted a non-binding indicative proposal to the Board of Amur in November 2022 to acquire 100% of the issued and to be issued share capital of Amur (post payment of its dividend as subsequently announced 24 May 2023) in a share-for-share exchange on a ratio of approximately 1 new Ascent share for every 21 Amur shares in issue (the \"Exchange Ratio\") (subject to the reservations set out below) (the \"Indicative Proposal\"). On the assumption that Amur only has assets of $5,000,000 in cash (post payment of dividend) and no further material liabilities, the indicative proposal is equivalent to a gross equity valuation of 6.1 pence per new Ascent share (based on an exchange rate of $1 = £0.8051). Despite multiple conversations with the Board of Amur and multiple follow up correspondence, the Company has as yet been unable to elicit a written respons...