Metalicity : Lodges Bidder's Statement for Nex Metals

Published: 2021-09-27 07:53:47 ET MCT.AX

Metalicity Limited (Metalicity) (ASX: MCT) is pleased to announce that the Bidder's Statement pursuant to the proposal announced on 14 September 2021 to Nex Metals Exploration Limited (ASX: NME) (Nex Metals) has now been lodged with ASIC.

Metalicity's offer to Nex Metals shareholders is 4.81 Metalicity ordinary shares (Metalicity Shares) for every 1 Nex Metals Share (Offer) on issue as at 14 September, valuing Nex Metals equity at A$12.8 million based on Metalicity's closing share price on 13 September 2021. The Offer is equivalent to approximately $0.048 (4.8 cents) per Nex Metals Share which represents an attractive premium of 30% to the closing price of Nex Metals Shares on 13 September 2021. Through the Offer, it is intended that ownership of the Kookynie and Yundamindra Gold Projects will be rationalised into a single listed entity. Nex Metals shareholders would own 37.5% of the enlarged entity1 that would hold a 100% interest in the Kookynie and Yundamindra Gold Projects, with improved access to capital, and an enhanced balance sheet position.

Metalicity also notes Nex Metals' announcement on 21 September 2021 advising it has provided notice that Nex Metals considers Metalicity to have breached the Joint Venture Agreement (JVA) between the parties. Metalicity rejects the assertions made by Nex Metals and is proceeding with its takeover offer. Metalicity further confirms that under the terms of its JVA with Nex Metals, it has earned a 51% controlling interest in the Kookynie and Yundamindra Gold Projects after successfully completing a $5.0m exploration program. This program was fully funded by Metalicity and the projects are now under the direct operational control of Metalicity, as per the JVA.

The results of this program have been announced to the ASX, in accordance with disclosure obligations. Metalicity has been in dialogue with Nex Metals for over 12 months regarding a potential combination of the two companies. A compelling proposal has been presented to the board of Nex Metals on multiple occasions and Metalicity believes this Offer should be placed directly to Nex Metals shareholders.

Contact:

Justin Barton

Tel: +61 8 6500 0202

Email: [email protected]