Hunan Nonferrous Looks to Takeover Abra Mining

By Joel ScanlonApr 5 2011

Abra Mining Ltd shares rose by more than 20% after the company recommended the takeover offer of Hunan Nonferrous Metals Corporation. The Chinese company currently is a majority stockholder of Abra Mining holding 74% shares of the company.

It has offered a $57.5 million dollar cash takeover bid to Abra Mining at $0.40 per share which the base metal explorer’s board of directors had unanimously recommended. The flagship asset of Abra Mining is the lead, silver, zinc, copper and gold deposit in the Mulgul project in central Western Australia.

Abra Mining’s non-executive director Jeffrey Moore said that they had managed to negotiate an attractive proposal for the minority shareholders. Mr Moore said that the offer is a premium of 90 per cent to the one-month volume weighted average price at March 29 and provides certainty of value to shareholders.

The executive director of Hunan Nonferrous Li Li said that the offer it had made was a compelling one given that it was a 100 % premium to the closing price of the Abra mining shares last Tuesday. The sale will give new life to the company as Abra Mining has reported a net loss of $986,000 in the year up to 30 June 2010.

Written by

Joel Scanlon

Joel relocated to Australia in 1995 from the United Kingdom and spent five years working in the mining industry as an exploration geotechnician. His role involved utilizing GIS mapping and CAD software. Upon transitioning to the North Coast of NSW, Australia, Joel embarked on a career as a graphic designer at a well-known consultancy firm. Subsequently, he established a successful web services business catering to companies across the eastern seaboard of Australia. It was during this time that he conceived and launched News-Medical.Net. Joel has been an integral part of AZoNetwork since its inception in 2000. Joel possesses a keen interest in exploring the boundaries of technology, comprehending its potential impact on society, and actively engaging with AI-driven solutions and advancements.

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Scanlon, Joel. (2019, March 19). Hunan Nonferrous Looks to Takeover Abra Mining. AZoMining. Retrieved on April 20, 2024 from https://www.azomining.com/News.aspx?newsID=3852.
MLA
Scanlon, Joel. "Hunan Nonferrous Looks to Takeover Abra Mining". AZoMining. 20 April 2024. <https://www.azomining.com/News.aspx?newsID=3852>.
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Harvard
Scanlon, Joel. 2019. Hunan Nonferrous Looks to Takeover Abra Mining. AZoMining, viewed 20 April 2024, https://www.azomining.com/News.aspx?newsID=3852.