Patronus Resources (ASX:PTN) has made an on-market takeover offer for Matsa Resources (ASX:MAT).
Announced on Monday (February 10), the offer is for all the shares of Matsa not currently owned by Patronus and its associates, which together hold the largest shareholding interest in Matsa.
At an offer price of AU$0.045 per share, the deal values Matsa at about AU$33 million.
Patronus believes that this amount “represents an attractive premium” for Matsa shareholders, measured at 12.5 percent compared to Matsa’s last trading price of AU$0.04 per share on February 6.
Following the announcement from Patronus, Matsa released its own statement on Monday, saying that “shareholders are advised to take no action” in relation to the offer at this point.
“Directors of Matsa are carefully considering the unsolicited offer and intend to provide their recommendation to shareholders via the release of a target statement in the coming weeks,” the company said.
Patronus notes in its release that the purchase would be in line with its gold exploration and development strategy.
In Western Australia, the company has honed its efforts on its the Cardinia gold project. The asset holds a gold resource of 0.9 million ounces, with potential for expansion via drilling.
Patronus extends equal importance to its Northern Territory project in the Pine Creek region, which covers over 1,500 square kilometres and holds gold and world-class uranium deposits.
Matsa operates in Western Australia too, where its main focus is its Lake Carey gold project. The company is working to start mining at the site’s Devon Pit gold mine, with a feasibility study due to be released this quarter.
Outside Western Australia, Matsa holds lithium assets in Thailand.
If successful in its bid for Matsa, Patronus said it will undertake a strategic review to assess and prioritize Matsa’s budgets and programs for its exploration and development projects.
“This may include an increase in funds being put toward advancing the existing projects held by Matsa,” Patronus said, adding that it will also work through each of Matsa’s and Patronus’ projects to assess their technical prospects, maintaining costs, expenditure commitments and overall commercial justification.
Unless extended or withdrawn, Patronus’ offer to Matsa will end on the ASX close of trading on March 24, 2025.
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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
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