Bathurst Resources intends to acquire Shangdu Mine

According to Mining Weekly, dual-listed exploration company Xanadu Mines announced on Monday that Bastion Mining, a consortium formed by Singapore's Boroo and Ganbayar Lkhagvasuren, a director of Xanadu Mines, has made an acquisition offer.

Under the implementation agreement for the acquisition, Bastion Mining will make an off-market takeover offer for the Xanadu Mines shares it does not already own, at a current price of AUD 0.08 per share. This offer implies a total market capitalization of AUD 160 million for the Mongolian copper-gold developer.

Colin Moorhead, President and CEO of Xanadu Mines, said the offer represents a 57% premium to the company's closing price on Friday (the 16th) and highlights the significant progress of the Kharmagtai project.

"The Takeovers Panel directors believe the offer is in the best interests of shareholders and unanimously recommend that shareholders accept the offer in the absence of a superior proposal, subject to an independent expert determining it to be fair and reasonable," he said.

On behalf of Bastion, Lkhagvasuren stated that the acquisition clearly provides shareholders with increased capital expectations and that Bastion is fully capable of advancing the Kharmagtai project.

"With Boroo's experience in acquiring, financing, and developing mining operations in Mongolia, Bastion is clearly positioned to advance Kharmagtai to the next stage of development," he said.

To support Xanadu Mines in fulfilling its management and joint venture financing obligations during the offer period, Bastion has agreed to subscribe for 286,829,633 Xanadu Mines shares at AUD 0.06 per share, thereby injecting AUD 17.2 million into the company.