Diatreme Resources has completed its acquisition of Metallica Minerals, creating an Australian silica sands powerhouse.
Diatreme first made a takeover bid for all of Metallica Minerals’ ordinary shares in February. The offer involved Metallica shareholders receiving 1.3319 fully paid ordinary shares in Diatreme for every one ordinary share held in Metallica.
Diatreme chief executive officer Neil McIntyre said that the acquisition of Metallica aligns with Diatreme’s strategy of building a world-class asset portfolio in Queensland.
“This is a regional consolidation of proximate, significant, high quality silica assets in the Cape Flattery region, providing the opportunity for sensible progressive project planning, permitting and implementation, whilst further broadening available export optionality within Cape Flattery regionally,” he said in February.
Diatreme and Metallica went back and forth until Diatreme declared its offer “unconditional” and “best and final” in June.
In July, an independent board committee comprising two Metallica independent non-executive directors, Stephen Everett and Brad Sampson, recommended that Metallica shareholders accept the offer from Diatreme.
Around the same time, Diatreme announced it had secured a 71.2 per cent stake in Metallica, giving it effective control of the company. Now, Diatreme has gained 100 per cent control over Metallica.
“As at close of the takeover offer period on August 6 2024, Diatreme had a relevant interest in 92.7 per cent of Metallica shares,” Diatreme said.
“Following completion of the compulsory acquisition process, Diatreme now has a relevant interest in 100 per cent of Metallica shares.”
Metallica boasts a mineral resource of nearly 50 million tonnes, compared to Diatreme’s more than 400 million tonne estimated resource base in what has been called the “Bowen Basin” of silica sand.
By combining these mineral resources, a leading ASX-listed silica sand company has been born.
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