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Lemur Resources Lodges Target's Statement To Bushveld Takeover Offer

Lemur Resources' (ASX: LMR) has lodged a supplementary Target's statement in reply to the takeover offer from Bushveld Minerals.

Independent directors have continued to recommend that shareholders reject Bushveld Minerals' (AIM:BMN) takeover offer though they acknowledged that there are risks to doing so.

With Bushveld having secured a 52.03% stake in Lemur, these risks include:

- Bushveld potentially being entitled to compulsorily acquire Lemur shares;
- Capital Gains Tax rollover relief may not be available if Bushveld acquires less than 80% of the Lemur Shares;
- Liquidity in Lemur shares may be significantly reduced and the price of Lemur shares may fall substantially;
- Bushveld will be in a position to cast a majority of votes at a general meeting of Lemur;
- Bushveld may be entitled to remove Lemur form the official list of the ASX; and
- There may be reduced likelihood of a subsequent takeover bid for Lemur.

The independent directors maintained that Bushveld's offer is neither fair or reasonable and that Lemur had $17 million in cash to progress its 135.7 million tonne Imaloto Coal Project in Madagascar without any aid from Bushveld.

Bushveld offer

Bushveld had offered 3 of its own shares for every 5 Lemur shares, saying that the acquisition would create a diversified African junior miner with a swathe of mineral assets spread across South Africa and Madagascar.

The AIM-listed company is focused on exploring and developing mineral projects on the Bushveld Complex in South Africa, and its primary projects are the Bushveld iron ore project and Mokopane tin project.

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