Lemur Resources (ASX: LMR) has provided an update today with the independent directors of the company continuing to recommend to shareholders that they reject the off-market takeover offer made by Bushveld Minerals (AIM: BMN).
As of 8 August 2013, Bushveld has a 16.77% relevant interest in Lemur
Lemur pointed to the fact that it has $17 million in cash, while Bushveld has limited cash and its ability to continue as a going concern is uncertain.
It also noted that not only is Bushveld listed on AIM rather than the ASX, it is tightly held and trading in Bushveld Shares may not be liquid.
The company also indicated that shareholders who accepted the offer would have reduced exposure to Lemur's assets.
It noted that if all of its shareholders accepted the offer, they would receive a total of 112.4 million Bushveld shares representing a 28.36% interest in the AIM-listed company.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.