Elemental Minerals (ASX/TSX: ELM) has been notified by Dingyi Investment Group, which made an incomplete offer in April, that it has now substantially completed its confirmatory due diligence review on Elemental.
The investigation phase of its due diligence and all existing questions have been addressed, Dingi Group Investment (HKG:0508) has reported.
In April, Elemental has received a A$160.8 million indicative, non-binding, incomplete and conditional proposal from Dingyi Group Investment (HKG:0508), a Hong Kong Stock Exchange listed company.
The cash offer was for all of the outstanding shares in Elemental for a cash price of A$0.66 per share.
The offer price represented a 126% premium to the volume weighted average price per Elemental share over the past 20 trading days.
Extension of time
Elemental and Dingyi have agreed to a mutual extension of the exclusivity period to 31 May 2013 to enable a bid to be finalised.
Major shareholders, Pala Investments Limited together with John Ian Stalker and Fiducs Limited have agreed to an extension of their letters of intent with Dingyi until the earlier of signing a mutually agreed pre-bid agreement or 31 May 2013. Each Supportive Shareholder has authorised Elemental to include this paragraph in this announcement.