Far East Gold Ltd (ASX: FEG) has become the subject of an off-market takeover bid from Xingye Gold (Hong Kong) Mining Company Limited, a wholly-owned subsidiary of China’s Inner Mongolia Xingye Silver & Tin Mining Co., Ltd. The offer, which commenced on 11 June 2026, values FEG shares at $0.13 cash per share. Far East Gold is an Australian exploration mining company pursuing various exploration projects in Australia and Indonesia, including gold and copper initiatives. Xingye Gold, a large-scale mining group, already holds a 19.99% stake in FEG.
Xingye Gold highlights several reasons for its bid, emphasising a significant premium to FEG’s recent trading prices. The $0.13 offer represents a 34.02% premium to FEG’s last close price of $0.097 on 26 May 2026. The bidder also cited concerns over FEG’s stalled projects, including the revocation of the Wonogiri Mining Licence, the expiry of the Woyla CSPA, and a lack of progression or reported results at other sites. Furthermore, Xingye expressed apprehension regarding FEG’s rapidly declining cash balance, projected to be fully depleted by 23 July 2026, and its apparent inability to secure additional funding.
The takeover bid is conditional on several factors, including minimum acceptance of more than 50% of FEG shares on a fully diluted basis, and the receipt of all necessary Chinese regulatory approvals from NDRC, MOFCOM, and SAFE. Xingye Gold has stated that if it acquires 90% or more of FEG, it intends to compulsorily acquire outstanding shares, delist the company from the ASX, and conduct a comprehensive strategic and operational review. If it secures between 50% and 90%, it would seek majority board representation and still pursue delisting, subject to ASX rules. The offer is scheduled to close at 7:00 pm (Sydney time) on 22 July 2026, unless extended.
