Copper mining firm Finders Resources has received a takeover offer from a consortium comprising Indonesian companies.
Named Eastern Field Developments, the consortium is jointly owned by Procap Partners (Provident), PT Saratoga Investama Sedaya and PT Merdeka Copper Gold.
Under the offer, the consortium has proposed to acquire all the shares of Finders, offering A$0.23 to the company’s shareholders for every share they own.
The consortium members already own around 19.8% interest in Finders.
Eastern Field Developments director David Fowler said: “Provident and Saratoga have determined their existing interest in Finders is too small in the context of their collective portfolios. This offer enables them to materially increase their shareholding in Finders.
“The offer also provides Finders shareholders with the opportunity to lock-in certain all cash value, while removing the Indonesian operational and regulatory risks associated with Finders’ Wetar project.
“In the event the offer is unsuccessful then Provident and Saratoga will review their Finders’ interest and may divest all their Finders shares and withdraw their involvement in Finders.”
Located on the north-central coast of Wetar Island, the copper project is part of the Maluku Barat Daya Regency (MBD), Maluku Province of the Republic of Indonesia.
The project has a 25,000tpa solvent extraction and electrowinning plant and produced around 12,929t copper according to the company’s half-year results.
The offer is conditional on Eastern Field securing a relevant interest in more than 50% of Finders shares, FIRB approval, and other customary conditions.