AIC Mines (ASX: A1M) makes play for Demetallica

AIC is encourging Demetallica shareholders to an accept an “attractive” offer of 1.5 of its shares in return for every 1.5 Demetallica shares.

AIC says it targets Demetallica’s Jericho copper deposit, located just 4 kilometres from its Eloise mine and Chimera project.

The combination of Jericho and the company’s other deposits within its Chimera project has the potential to increase the mine life of Eloise to more than 10 years and annual production to more than 20,000 tonnes of copper and 10,000 ounces of gold in concentrate, representing a 60 per cent increase on the mine’s existing production rate, the Company says.

“o have exposure to the future upside associated with the Jericho copper deposit and Demetallica’s other exploration assets whilst mitigating and diversifying the risks you are exposed to by becoming part of a larger, and more diversified company.

“The combination of the assets of AIC Mines and Demetallica is a logical combination with strong strategic rationale,” Chairman Josef El-Raghy said in a letter to Demetallica shareholders.

“The close proximity of AIC Mines’ Eloise copper mine and Demetallica’s Chimera copper project creates the opportunity for numerous synergies. AIC Mines has the mining and processing capability, and financing capacity to rapidly develop the resources at Demetallica’s Chimera copper project.”

Meanwhile, Demetallica has advised its shareholders to TAKE NO ACTION concerning AIC Mines’ offer or any document received from AIC Mines until they receive Demetallica Directors’ formal recommendation.

The date of the Offer is 5 October 2022, and the Offer will close on 7 November 2022 unless extended or withdrawn.

Demetallica ASX shares will open at 28.5c.

About AIC Mines

AIC Mines is a growth-focused Australian resources company. The Company’s strategy is to build a portfolio of gold and copper assets in Australia through exploration, development and acquisition. AIC owns the Eloise copper mine – a high-grade underground mine in North Queensland.

About Demetallica 

Demetallica Limited is an Australian public minerals exploration company listed on the Australian Securities Exchange (ASX).

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