Metal Tiger said independent directors Terry Grammer and Jordan Luckett have notified BMR that they will not be recommending the indicative offer to its shareholders because it fundamentally undervalues the company.
The Independent Directors refer to the announcement made on 14 November 2016 in respect of its Joint Venture project with MOD Resources in the Kalahari Copper Belt in Botswana (70% MOD Resources / 30% Metal Tiger) in which Metal Tiger stated that MOD Resources (ASX:MOD) expects to announce the results of the scoping study for a potential open pit mining operation at T3 to be completed and announced during November 2016.
The Independent Directors recognise that there are synergies between the Companies that could benefit Metal Tiger and its shareholders and, in the event that a significantly improved indicative offer is received from BMR, they confirm that they are willing to enter into negotiations with BMR after the results of the scoping study have been announced.
The Independent Directors note that in accordance with Rule 2.6(a) of the City Code on Takeovers and Mergers (the "Takeover Code"), BMR must, by not later than 5.00 p.m. on 23 December 2016 (the "relevant deadline"), either announce a firm intention to make an offer for the Company in accordance with Rule 2.7 of the Takeover Code or announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Takeover Code applies.
The Independent Directors have received financial advice from SPARK Advisory Partners Limited (SPARK) on the terms of the Indicative Offer. In providing this advice, SPARK has taken into account the commercial assessment of the Independent Directors.
This statement is being made by Metal Tiger without the prior agreement or approval of BMR. Shareholders should be aware that there can be no certainty that an offer will be made.