Rum Jungle Resources Limited (ASX:RUM) is pleased to announce that it is increasing its Offer for Central Australian Phosphate Limited (ASX:CEN) to 1 cent per CEN share plus 1 RUM share for every 13 CEN shares.
Offer increased to 1 cent per CEN share plus 1 RUM share for every 13 CEN shares(Note:1)
- Offer implies a value of approximately $17m for CEN and 2.88 cents per CEN share(Note:2)
- The Offer is within the valuation range assessed by CEN's independent expert
- CEN shareholders will receive approximately 15.9% of the combined company (in addition to 1 cent per CEN share)
Rum Jungle Resources will free its Offer of all conditions(Note:3) if: (a) it receives acceptances representing 50% of CEN's shares on issue by no later than 7pm (Melbourne time) Wednesday 19 June 2013; and (b) there are no breaches of any conditions of the Offer before that time (other than those breaches of which Rum Jungle Resources is presently aware(Note:4)
Central Australian Phosphate shareholders with queries can call the Offer Information Line on 1800 810 891 (For callers in Australia) or +61 2 8256 3353 (for callers outside of Australia)
In Rum Jungle Resources' opinion, the proposed joint venture agreement with Monument Mining Limited (Monument) is significantly inferior to Rum Jungle Resources' Offer.
Based on CEN's announcement of 15 May 2013 concerning the proposed joint venture with Monument, Rum Jungle Resources considers the joint venture will effectively transfer management and control of CEN's Arganara, Lucy Creek and Warrabri phosphate projects to Monument for just $4m.
The proposed joint venture allows Monument to implement its own manager of the project(Note:5) and facilitates CEN's board remaining in place. It appears to provide Monument with the right (but no obligation) to contribute a further $4.8m over 4½ years to increase its interest in these phosphate projects to 51%.
Rum Jungle Resources believes it is better placed to move to production in the Northern Territory quicker than either CEN or Monument. The development of its Northern Territory resource is Rum Jungle Resources primary focus.
In contrast, Monument is a Canadian listed gold explorer and producer and does not have any operations in Australia, nor any expertise in the Northern Territory. Under the proposed joint venture agreement, Monument is obliged to spend no more than $4m.
1 One RUM share for every 13 CEN shares equates to approximately 0.0769 RUM shares for every CEN share.
2 Implied Offer value is calculated on the basis of the Preferred Value of $0.245 per RUM share ascribed by the independent expert appointed by CEN to opine on the Offer.
3 The conditions are set out in clause 11.1 of the Offer Terms (see Appendix A of Rum Jungle Resources' Bidder's Statement).
4 If Rum Jungle Resources receives acceptances representing 50% of CEN's shares on issue by no later than 7pm (Melbourne time) Wednesday 19 June 2013, Rum Jungle Resources will waive any breach arising from CEN having entered into the heads of agreement with Monument as announced on 15 May 2013 and any liabilities incurred before the date of this announcement in relation to the appointment of CEN's takeover advisers, being the all the breaches of which Rum Jungle Resources is presently aware.
5 After consulting with CEN.
A comparison of Rum Jungle Resources and Monument and their respective proposals can be found at the following link:
About Rum Jungle Resources Limited:
Rum Jungle Resources (ASX:RUM) is an Australian Securities Exchange listed, diversified junior explorer focused on highly prospective land located in Australia’s Northern Territory and Queensland.
A Northern Territory and Queensland focussed mineral explorer with a portfolio including: Uranium, Potash, Phosphate and Base Metals.
Rum Jungle Resources has strategic alliances with other major Northern Territory explorers increases exposure to additional exploration areas.
Rum Jungle Resources has experienced geological management backed up by a solid financial base to fund exploration budgets.
Rum Jungle Resources Limited T: +61-8-8942-0385 F: +61-8-8942-0318 WWW: www.rumjungleresources.com.au
Rum Jungle Resources Limited
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