An Australian base metal junior miner operating in northwestern Ontario is seeking advice stemming from a hostile takeover attempt.
Magma Metals received an unsolicited takeover bid by fellow Australian miner, Panoramic Resources, which owns 9.34 per cent of Magma.
Under the offer, Magma shareholders would receive two Panoramic shares for every 17 Magma shares held.
Panoramic has a keen interest in Magma's flagship platinum-palladium-copper-nickel project northeast of Thunder Bay.
The Thunder Bay North project is 50 kilometres northeast of the city.
Last year, Magma received a positive scoping study for its Thunder Bay North project last year. The project, proposed both as an open pit and underground operation, contains a combined 719,000 ounces of platinum equivalent indicated and inferred.
In a Feb. 7 statement, Magma has appointed a group of advisors and assembled a “bid response team” to assist with the company's assessment and response ot the offer.
Magma is instructing its shareholders to “take no action” in relation to the offer and await word from the board.
Panoramic said the offer is conditional on Magma refraining from spinning off its Western Australian gold assets.
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